On the 19th, the Korea Composite Stock Price Index (KOSPI) started over 2% lower due to the impact of the sharp decline in the U.S. stock market.
According to the Korea Exchange, the KOSPI index started at 2463.06 and, as of 9:01 a.m., recorded a drop of 60.80 points (2.45%) from the previous trading day at 2423.56.
The results of the U.S. Federal Reserve's final monetary policy meeting of the year and the 'hawkish' remarks by Fed Chair Jerome Powell appear to have dampened investor sentiment in the domestic stock market.
The Federal Open Market Committee (FOMC) of the Federal Reserve announced a decision to cut the benchmark interest rate by 25 basis points (1 basis point = 0.01 percentage points) two hours before the closing of the New York stock market.
Although the action was in line with expectations, the 'dot plot' reflecting future interest rate forecasts from Fed officials became a negative factor, with projections indicating that the interest rate cut next year would be limited to 50 basis points.
Powell noted, 'As inflation expectations rise again, the median forecast for interest rates has also increased somewhat,' adding, 'If inflation strengthens further, we may slow the pace of rate cuts.'
The Dow Jones Industrial Average fell by 1123.03 points (2.58%) to close at 42,326.87 on the New York Stock Exchange (NYSE), marking the tenth consecutive trading day of decline.
The Standard & Poor's 500 Index decreased by 178.45 points (2.95%) to 5872.16, while the technology-heavy Nasdaq Composite Index fell by 716.37 points (3.56%) to 19,392.69.
Han Ji-young, a researcher at Kiwoom Securities, said, 'The U.S. stock market plummeted due to a more hawkish December FOMC than expected, and the dollar and exchange rates surged,' noting, 'The domestic stock market is also exposed to downward pressure.'
Looking at the trading trends by investor in the securities market (KOSPI), foreign investors are net selling 46.4 billion won. Institutions and individuals are net buying 4.5 billion won and 38.7 billion won, respectively.
The previous day, the KOSPI index had risen by 1.12%. In particular, foreign investors had net purchased the largest amount of 267.6 billion won since the emergency state was declared on the 3rd, but they reversed course within a day.
By stock, most of the large-cap stocks are showing declines. In particular, semiconductor stocks are weak due to a sharp drop in the after-hours stock price of the U.S. semiconductor company Micron. Samsung Electronics is down 2%, and SK Hynix has dropped 5%.
Additionally, stocks of LG Energy Solution, Hyundai Motor Company, Celltrion, Kia, KB Securities, and Naver are all declining. All of the top 30 large-cap stocks are in the red.
At the same time, the KOSDAQ index is down 17.48 points (2.51%) at 680.09, with foreign investors leading the decline through net sales of 12.2 billion won.
The stock prices of the top large-cap stocks in the KOSDAQ market are all declining, with all of the top 30 stocks in the red. The stock price of Lino Industry, classified as a semiconductor stock, is down over 4%.
Meanwhile, in the Seoul foreign exchange market, the won-dollar exchange rate is currently at 1439.10 won, an increase of 2 won (0.14%) compared to the previous trading day.