Kospi opens 1.3% lower as recession risks grow in U.S.

Shares opened lower Monday after weaker U.S. employment data, amid concerns that the U.S. Federal Reserve has waited too long to cut rates as recession risks grow.

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on Monday. [YONHAP]

Shares opened lower Monday after weaker U.S. employment data, amid concerns that the U.S. Federal Reserve has waited too long to cut rates as recession risks grow.

The Kospi fell 1.3 percent, or 33.89 points, to 2,510.39 in the first 15 minutes of trading.

Weaker-than-expected employment data in August weighed on investor sentiment ahead of the Fed's rate decision later this month, analysts said.

They said investors would focus on next week's inflation data to get a final clue on the U.S. central bank's monetary policy.

In Seoul, tech stocks led the decline.

Samsung Electronics fell 2.5 percent, chipmaker SK hynix retreated 2.6 percent, auto parts maker Hyundai Mobis shed 0.9 percent and Korea Electric Power Corporation was down 0.9 percent.

Among gainers, Hyundai Motor rose 0.2 percent, battery maker LG Energy Solution climbed 0.1 percent and refiner SK Innovation gained 0.4 percent.

The local currency was trading at 1,337.95 won against the dollar, up 10.35 won from the previous session.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]