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South Korean shares began weaker on Monday, as investors adopted a cautious stance in anticipation of the U.S. Federal Reserve’s rate-setting meeting later this week. The benchmark Korea Composite Stock Price Index () dropped 10.44 points, or 0.4 percent, to 2,590.84 in the initial 15 minutes of trading.
The market expects that the Federal Reserve will maintain key rates steady during the Federal Open Market Committee (FOMC) meeting scheduled for Tuesday and Wednesday. However, there is speculation that the U.S. central bank may implement one additional rate hike this year, given the robust economic recovery of the world’s largest economy.
In Seoul, market heavyweights led the early decline. Samsung Electronics (KS:), a market bellwether, fell by 0.97 percent and SK Hynix, the second-largest share in terms of market capitalization, shed 0.08 percent. The top carmaker Hyundai Motor (OTC:) saw a decrease of 0.31 percent and its smaller affiliate Kia retreated by 0.75 percent.
Furthermore, leading battery maker LG Energy Solution experienced a significant drop of 1.56 percent, while Samsung SDI retracted by 0.86 percent.
The local currency was also impacted, with the won trading at 1,328.3 against the U.S dollar at 9:15 a.m., marking a decrease of 2.4 won from Friday’s close.
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