Seoul shares extended losses Friday morning as investors were disappointed with hawkish comments by Federal Reserve officials on interest rate cuts.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 32.19 points, or 1.17 percent, to 2,709.81 as of 11:20 a.m.

Overnight, the Dow Jones Industrial Average fell 1.35 percent to 38,596.98 points and the tech-heavy Nasdaq declined 1.4 percent to 16,049.08.

Fed officials said the U.S. central bank needs time to be confident on inflation before starting to cut rates and no rate cuts may be required this year unless inflation is in check.

Institutions and foreigners sold a combined 437 billion won (US$323 million) worth of stocks, offsetting individuals’ stock purchases valued at 447 billion won.

In Seoul, tech, airline and energy stocks declined.

Market bellwether Samsung Electronics Co. fell 1.3 percent, No. 2 chipmaker SK hynix Inc. declined 2.6 percent, top carmaker Hyundai Motor Co. dropped 0.7 percent, national flag carrier Korean Air Co. shed 0.
9 percent, and leading battery maker LG Energy Solution was down 1.2 percent.

Hanwha Aerospace Co. plunged 8.3 percent on its planned spin-off news to focus on the defense business.

Among gainers, the country’s leading shipbuilder HD Hyundai rose 1.9 percent, leading cosmetics firm Amorepacific Corp. climbed 2.8 percent, and refiner S-Oil Corp. jumped 4.3 percent.

The local currency was trading at 1,352.45 won against the U.S. dollar, down 5.35 won from the previous session’s close.

Source: Yonhap News Agency