Seoul shares open sharply lower on inflation, recession woes

South Korean stocks opened sharply lower Tuesday, tracking an overnight crash on Wall Street, on concerns over high inflation and a global economic downturn.

The Korea Composite Stock Price Index (KOSPI) lost 46.77 points, or 1.79 percent, to 2,564.04 in the first 15 minutes of trading.

Overnight, US shares tumbled as investors remained worried about inflation and the Federal Reserve’s monetary tightening, which would slow the economic recovery.

The Dow Jones Industrial Average sank 1.99 percent, and the Nasdaq Composite Index dropped 4.29 percent.

In Seoul, most big-cap shares traded lower, with tech and chemicals hit harder.

Top-cap Samsung Electronics lost 0.76 percent, and No. 2 chipmaker SK hynix fell 0.47 percent.

Top battery maker LG Energy Solution went down 2.28 percent, and Samsung SDI slid 3.21 percent.

Leading chemicals maker LG Chem tumbled 4.27 percent, and top refiner SK Innovation skidded 2.20 percent. Major steelmaker POSCO Holdings also fell 2.49 percent.

Carmakers also lost ground. No. 1 carmaker Hyundai Motor decreased 1.10 percent, and Kia inched down 0.12 percent.

The local currency was trading at 1,277.80 won against the US dollar as of 9:15 a.m., down 3.8 won from the previous session’s close. (Yonhap)