Seoul shares end higher despite hawkish Fed chief

SEOUL, Aug. 31 (Yonhap) -- Monday saw Seoul shares finish higher, buoyed by a resurgence in tech stocks. Despite initially dropping 2.58 percent, the Korea Composite Stock Price Index (KOSPI) recovered to close up 31.14 points, or 0.46 percent, at 6,820.02. This marked a stark contrast to Wall Street's decline on Friday, with the Dow Jones Industrial Average slipping 0.02 percent and the tech-focused Nasdaq Composite falling 0.52 percent.

However, net selling among institutions, foreign investors, and retail investors dampened the main index's gains, totaling 793.12 billion won, 639.86 billion won, and 144.33 billion won, respectively.

In his inaugural major speech as Federal Reserve Chair Kevin Warsh, the hawkish official cautioned that inflation continues to pose a concern. This warning left the door open for additional U.S. rate hikes throughout the year. Coupled with heightened expectations of a U.S. rate increase, investors remained vigilant about the escalating tensions in the Middle East, particularly following the recent U.S. strikes in the Strait of Hormuz.