Seoul Stock Market Dips Nearly 2% Due to Hawkish U.S. Fed and Micron's Disappointing Results

Seoul, Dec 19 (NationPress) The stock market in Seoul experienced a drop of nearly 2 percent on Thursday as investor confidence wavered after the U.S. Federal Reserve signaled a slower pace of monetary easing expected for the upcoming year, alongside substantial losses reported by Micron Technology overnight.

The Korea Composite Stock Price Index (KOSPI) fell sharply by 48.5 points, or 1.95 percent, concluding the day at 2,435.93.

The local currency was traded at 1,451.9 won against the U.S. dollar by 3:30 p.m., marking a decrease of 16.4 won from the previous day and reaching a 15-year low, according to reports from Yonhap news agency.

Trade volume in the KOSPI was moderate, with 492.8 million shares exchanging hands, amounting to 8.3 trillion won (approximately US$5.7 billion), and the number of losers greatly surpassed winners at 681 to 212.

Foreign investors and institutions offloaded local shares worth 429.8 billion won and 504.2 billion won respectively, reacting to the Fed's indication of fewer rate cuts anticipated in 2025 amidst unexpected inflation readings.

The Fed's cautious approach dampened investor enthusiasm, despite its third consecutive rate cut, also affecting major U.S. indices overnight.

The Dow Jones Industrial Average decreased by 2.58 percent, the S&P 500 fell 2.95 percent, and the tech-heavy Nasdaq Composite dropped 3.56 percent.

Furthermore, Wall Street faced downward pressure from Micron Technology's 4.33 percent decline, prompted by disappointing earnings guidance, with the company's shares plunging over 10 percent in after-hours trading.

"The Fed's hawkish position has led to the depreciation of the Korean won, prompting foreign and institutional investors to exit the Korean market," stated Lee Kyoung-min, an analyst at Daishin Securities.

In Seoul, the majority of prominent tech stocks witnessed significant declines.

The tech giant Samsung Electronics fell 3.28 percent to 53,100 won, while its competitor in chip manufacturing, SK hynix, dropped 4.63 percent to 175,000 won.

Leading battery manufacturer LG Energy Solution saw a decrease of 2.49 percent to 372,000 won, paralleling Tesla's 8.28 percent drop overnight.

Top automaker Hyundai Motor also fell 2.08 percent to 212,000 won, while Kakao, the operator of the nation's leading mobile messaging platform, plummeted 5.07 percent to 41,200 won.

Samsung Biologics declined 2.24 percent to 958,000 won, and Celltrion dropped 3.41 percent to 192,400 won.