Powell's 'One Word' Triggers Institutional Selling... Domestic Stock Market Starts Lower

KOSPI Starts at 2297.45, Down 39.42P (-1.69%)
KOSDAQ Starts at 685.42, Down 11.95P (-1.71%)

[Asia Economy Reporter Ji Yeon-jin] The domestic stock market started lower on the 3rd due to the impact of the United States' fourth consecutive giant step (75bp base rate hike).

On this day, the KOSPI index opened at 2297.45, down 39.42 points (1.69%) from the previous day, and the early session decline has slightly narrowed. As of 9:10 a.m., institutions are leading the weakness by net selling about 57.3 billion KRW, and foreigners are also selling about 13.6 billion KRW. Only individuals are net buying about 69.5 billion KRW.

The KOSDAQ also opened down 11.95 points (1.71%) at 685.42 but the decline has slightly narrowed to 1.40%. In the KOSDAQ market, individuals are net buying about 1.5 billion KRW and foreigners about 6.2 billion KRW, but institutions are net selling about 6.8 billion KRW.

The U.S. Federal Reserve (Fed) raised the base interest rate by 75bp again on the 2nd (local time), following September. This was the fourth consecutive giant step taken as a response to curb the burden of high inflation levels this year. Fed Chair Jerome Powell stated that the pace of future hikes could slow down, but the final interest rate level could be higher than previously expected.

This content was produced with the assistance of AI translation services.