Seoul: Stocks post biggest drop in nearly 4 weeks as rate hike saps risk appetite

[SEOUL] South Korean shares posted their biggest drop in nearly four weeks on Friday, dragged down by tech stocks tracking an overnight slump on Nasdaq, while a rate hike by the country's central bank dampened sentiment.

The benchmark Kospi closed down 40.17 points or 1.36 per cent at 2,921.92, marking its sharpest decline since Dec 20.

For the week, the index fell 1.12 per cent extending the declines to a fourth straight week.

Tech heavyweights tracked the Nasdaq's 2.5 per cent drop on Thursday, with chip giants Samsung Electronics and SK Hynix falling 0.77 per cent each, while LG Chem slumped 5.17 per cent.

South Korea's central bank raised its benchmark rate to 1.25 per cent, bringing the rate back to pre-pandemic levels, to stem inflation risks and signalled it may tighten further.

On the main board, foreigners sold net US$207.55 million worth of Kospi shares.

REUTERS