SEOUL, February 02 (AJP) – Asian stocks fell broadly after U.S. President Donald Trump nominated former Federal Reserve governor Kevin Warsh as the next Fed chair, prompting investors to scale back expectations for further interest-rate cuts.
Warsh is widely viewed as an inflation hawk, and his nomination triggered a shift in rate expectations that rippled through financial markets. South Korean equities opened lower, U.S. stock futures weakened, gold and silver prices fell sharply, and the U.S. dollar strengthened.
The dollar traded at 1,459.00 won, up 7.00 won from the previous session.
South Korea’s benchmark KOSPI index stood at 5,157.36 as of 10:24 a.m., down 1.27 percent, while the tech-heavy KOSDAQ slipped 1.19 percent to 1,135.87.
Stocks slid at the open as foreign investors stepped up selling amid a sharp rise in the won-dollar exchange rate. Losses narrowed later as individual investors moved in to buy on dips.
Individual investors purchased a net 1.4755 trillion won worth of shares in early trading, while foreign and institutional investors sold a net 1.5 trillion won and 44.7 billion won, respectively.
Most heavyweight stocks traded lower. Samsung Electronics fell 1.18 percent to 158,600 won, while chipmaker SK hynix dropped 2.86 percent to 26,000 won. Battery maker LG Energy Solution slipped 0.25 percent to 397,000 won.
Financial and biotech shares also weakened, with Samsung Life Insurance down 1.33 percent to 185,800 won and Samsung Biologics losing 0.34 percent to 1,739,000 won.
Automakers bucked the broader decline. Hyundai Motor rose 0.40 percent to 502,000 won, while Kia gained 1.51 percent to 154,900 won.
Defense and aerospace stocks also edged higher, with Hanwha Aerospace up 0.08 percent at 1,301,000 won.
Shipbuilders traded mixed. HD Hyundai Heavy Industries fell 0.52 percent to 572,000 won, while Hanwha Ocean climbed 1.73 percent to 140,900 won.
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