Korean stocks open sharply lower Thursday

Stocks opened sharply lower Thursday, tracking losses on Wall Street as investors digest the Federal Reserve's aggressive monetary tightening stance.

Electronic display boards at Hana Bank in central Seoul show stock and foreign exchange markets Thursday morning. [YONHAP]

Stocks opened sharply lower Thursday, tracking losses on Wall Street as investors digest the Federal Reserve's aggressive monetary tightening stance.

The benchmark Kospi dipped 39.87 points, or 1.71 percent, to 2,297 in the first 15 minutes of trading.

The Fed raised its benchmark rate by another 75 basis points on Wednesday, local time, bringing the federal funds rate to a target range of 3.75 to 4 percent.

Fed Chair Jerome Powell warned it has "some ways to go" with inflation, and the country's base rate could peak at a higher "terminal" level.

U.S. stocks fell following such remarks, as hopes that the Fed would pivot its hawkish stance turned into disappointment.

The Dow Jones Industrial Average declined 1.55 percent, the S&P 500 fell 2.5 percent, and the tech-heavy Nasdaq Composite slid 3.36 percent.

In Seoul, large-cap shares opened lower across the board.

Samsung Electronics declined 2.35 percent, and SK hynix retreated 2.6 percent.

LG Energy Solution inched up 0.7 percent, Celltrion slid 2.4 percent, and Hyundai Motor lost 2.12 percent.

The local currency was trading hands at 1,426.9 won against the dollar, up 9.5 won from Wednesday's close, as of 9:15 a.m.

BY CHO JUNG-WOO, YONHAP [cho.jungwoo1@joongang.co.kr]