Seoul shares open higher Wednesday despite concerns of global recession

Seoul shares opened higher Wednesday despite concerns over a global recession after the U.S. Federal Reserve vowed to continue its monetary tightening to tame inflation.

Electronic display boards at Hana Bank in central Seoul show stock and foreign exchange markets on Wednesday morning. [NEWS1]

Seoul shares opened higher Wednesday despite concerns over a global recession after the U.S. Federal Reserve vowed to continue its monetary tightening to tame inflation.

The benchmark Kospi rose 6.35 points, or 0.27 percent, to 2,339.64 in the first 15 minutes of trading.

Institutions and individuals bought a combined 53 billion won ($41 million) worth of stocks, exceeding foreign selling valued at 51 billion won.

Fed officials last week indicated plans to raise the rate to a higher-than-expected level until they are confident inflation has been subdued.

On Tuesday, the Bank of Japan announced it will raise 10-year government bond yields to around 0.5 percent from the previous upper limit of 0.25 percent. The decision was seen as heralding Japan's move for monetary tightening.

In Seoul, tech and airline stocks led gains, with Samsung Electronics rising 0.2 percent, chipmaker SK hynix climbing 0.4 percent, and national flag carrier Korean Air gaining 0.2 percent to 24,500 won.

Among decliners, Hyundai Motor fell 0.3 percent to 156,500 won, its affiliate Kia declined 0.6 percent to 62,000 won, and LG Chem shed 1.1 percent to 624,000 won.

The local currency was trading at 1,285.85 won against the dollar as of 9:15 a.m., down 3.75 won from the previous session's close.

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