Seoul Stock Market Declines Amid US Monetary Policy Doubts

Seoul, Dec 20 (NationPress) Shares in Seoul dropped by over 1 percent on Friday, fueled by worries about a slower monetary easing cycle in the United States and the lingering impact of President Yoon Suk Yeol's short-lived martial law declaration this month.

The Korean won continued to linger around 1,450 won per US dollar for the second consecutive session, marking the lowest rate in 15 years.

The benchmark Korea Composite Stock Price Index (KOSPI) plummeted by 31.78 points, or 1.3 percent, to finish at 2,404.15, dipping below the 2,400 threshold at one point during trading.

Trading volume was moderate at 606.4 million shares, valued at 9.12 trillion won (approximately US$6.28 billion), with decliners outnumbering advancers 703 to 204, as reported by Yonhap news agency.

Foreign and institutional investors sold off local shares worth 817 billion won and 89.1 billion won, respectively, while retail investors recorded a net purchase of 790 billion won.

Earlier this week, US Federal Reserve Chair Jerome Powell hinted at two more rate cuts next year, which is two fewer than the Fed's previous forecast three months ago.

"The stock market is facing increasing volatility due to uncertainties surrounding US monetary policy," stated Kim Ji-won, an analyst at KB Securities. "Market sentiment towards risky assets is likely to remain subdued for the foreseeable future.

In Seoul, leading technology firm Samsung Electronics saw a decline of 0.19 percent to 53,100 won, while the second-largest chipmaker SK hynix fell by 3.71 percent to 168,500 won.

Financial stocks also faced losses, with KB Financial dropping 1.27 percent to 85,800 won and Shinhan Financial decreasing 1.23 percent to 48,250 won.

Major pharmaceutical company Samsung Biologics fell 1.98 percent to 939,000 won, while Celltrion edged up slightly by 0.05 percent to 192,500 won.

The local currency was quoted at 1,451.4 won against the US dollar at 3:30 PM, up 0.5 won from the previous session.

The US dollar remained elevated after the US reported stronger-than-expected economic growth of 3.1 percent for the third quarter, surpassing the earlier estimate of 2.8 percent.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys increased by 2.6 basis points to 2.629 percent, and the return on the benchmark five-year government bonds rose by 3.9 basis points, closing at 2.775 percent.