Seoul shares open tad lower on Fed rate freeze, Middle East uncertainties
South Korean stocks opened slightly lower as investors were trying to digest the US Federal Reserve's rate freeze and developments in the Middle East.
The benchmark Korea Composite Stock Price Index fell 4.16 points, or 0.14 percent, to 2,968.03 in the first 15 minutes of trading.
Overnight, Wall Street closed mixed after the Fed decided to hold its benchmark interest rate steady at the 4.25-4.50 percent range.
The Dow Jones Industrial Average went down 0.1 percent and the S&P 500 fell 0.03 percent, while the tech-heavy Nasdaq composite went up 0.13 percent.
The Fed kept its projection for two rate cuts this year but remained in a wait-and-see mode amid persisting uncertainties stemming from the Donald Trump administration's tariff policies.
Fed Chair Jerome Powell said uncertainties have come down after peaking in April, but tariffs are expected to heighten inflationary pressure and weigh on the US economy.
Investors' eyes were also on the escalating military conflict between Israel and Iran amid lack of details on the direction of the Trump administration's plan for Tehran.
In Seoul, investors' eyes are on whether the KOSPI could surpass the 3,000-point mark for the first time in over three years.
Tech behemoth Samsung Electronics lost 0.5 percent, and its chipmaking rival SK hynix declined 0.61 percent.
Defense giant Hanwha Aerospace dropped 1.19 percent, and major nuclear power plant manufacturer Doosan Enerbility retreated 2.13 percent.
But top automaker Hyundai Motor increased 0.73 percent, and leading shipbuilder HD Korea Shipbuilding gained 1.63 percent.
Top internet portal operator Naver rallied 4.83 percent, while Kakao, the operator of the country's dominant mobile messenger, soared 6.34 percent.
The local currency was trading at 1,375.4 won against the greenback at 9:15 a.m., down 6 won from the previous session. (Yonhap)
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