Seoul stocks declined on Tuesday ahead of the US Federal Reserve's interest rate decision, following a higher close on Monday. The KOSPI index opened down 0.36 percent at 4,139.69 and fell further by 0.51 percent to 4,133.64 as of 11:20 a.m. Investors anticipated a rate cut but sought clues on future monetary policy.
Seoul shares closed sharply higher on December 8, rising 1.34 percent to 4,154.85 amid anticipation of the US Federal Reserve's rate-setting meeting this week. Trading volume was moderate at 392 million shares worth 15.1 trillion won ($10.3 billion), with foreigners net buying 321.3 billion won, individuals net selling 342 billion won, and institutions net buying 30.7 billion won. The two-day Federal Open Market Committee meeting begins Tuesday US time, with markets widely expecting a 0.25 percentage point rate cut.
"While whether the FOMC will cut rates is important, the market will also focus on the rate outlook and the press conference by Jerome Powell," said Han Ji-young, a researcher at Kiwoom Securities. Investors await earnings from Oracle and Broadcom, which could impact Samsung Electronics and SK hynix shares.
On December 9, the market turned lower. The KOSPI opened down 0.36 percent at 4,139.69 in the first 15 minutes and fell 21.21 points or 0.51 percent to 4,133.64 as of 11:20 a.m. Tech and energy shares dragged the index, with Samsung Electronics down 1.28 percent, Naver off 0.3 percent, Korea Electric Power Corp. sinking 2.32 percent, and Korea Gas Corp. slipping 0.83 percent. Top carmaker Hyundai Motor tumbled 3.49 percent, and affiliate Hyundai Mobis dipped 1.93 percent. Bank shares weakened, with KB Financial Group declining 2.03 percent and Shinhan Financial Group 0.51 percent.
Overnight, US stocks closed lower, with the Dow Jones Industrial Average falling 0.45 percent and Nasdaq composite losing 0.14 percent. The local currency traded at 1,470.7 won against the dollar, down 3 won. Bond yields rose, with three-year Treasuries at 3.034 percent and five-year at 3.239 percent.
