Seoul stocks open lower despite US rally

Seoul stocks started the day on a downward trajectory on Friday, contrary to the upward trend seen on Wall Street the previous night. The benchmark Korea Composite Stock Price Index (KOSPI) initiated trading at 6,846.54, marking a decline of 65.83 points or 0.95 percent from the previous close at 9:15 a.m. local time. This shift came as investors remained cautious, waiting to see what the Jackson Hall meeting would reveal about the Federal Reserve's approach to setting interest rates.

Despite this, major stock indexes in the United States had risen overnight, with the S&P 500 gaining 0.72 percent and the tech-focused Nasdaq surging 1.57 percent. The driving force behind the U.S. market's positive movement was attributed to tech firms associated with artificial intelligence (AI), particularly Nvidia, whose shares soared following earnings that surpassed market forecasts.

Federal Reserve Chair Kevin Warsh was scheduled to make his inaugural major address as the head of the central bank later that day during the Jackson Hole symposium. Market analysts are keenly monitoring the possibility of the KOSPI surpassing the 7,000-point mark, although such a feat appears promising due to the growing optimism surrounding the stock's valuation metrics.

In the domestic market, a majority of large-cap stocks were trading at a loss. Samsung Electronics, a notable benchmark in South Korea, experienced a minor dip.