Seoul shares open sharply lower on Fed chief's hawkish comments

Key facts

• Seoul shares opened sharply lower on Monday.
• The KOSPI index fell 2.58% at the opening bell.
• The decline is linked to hawkish comments from the U.S. Federal Reserve chair.
• These comments suggest a potential imminent interest rate hike.
• Wall Street indices also closed lower on Friday.

Seoul shares opened sharply lower on Monday, mirroring losses on Wall Street, as investors reacted to hawkish comments from the U.S. Federal Reserve chair that suggested a potential imminent interest rate hike. The benchmark Korea Composite Stock Price Index (KOSPI) fell 175.30 points, or 2.58 percent, to 6,618.58 at the opening bell. On Friday, the Dow Jones Industrial Average declined 0.02 percent, while the tech-heavy Nasdaq Composite dropped 0.52 percent. Fed Chair Kevin Warsh, in his first major speech as chair, indicated that inflation remains a concern, leaving open the possibility of further interest rate increases at the upcoming Jackson Hole symposium.