South Korean stocks opened marginally lower Thursday after the US Federal Reserve threw cold water on market expectations that the rate hike cycle is soon nearing an end, ruling out the possibility of a rate cut this year.

The benchmark Korea Composite Stock Price Index slipped 3.42 points, or 0.14 percent, to 2,497.98 in the first 15 minutes of trading.

Fed Chair Jerome Powell said after its policy meeting that it's too soon to say the rate hike cycle is over as the Fed believes the inflation remains too high.

The US central bank raised the interest rate by 0.25 percentage point to a range of 5-5.25 percent following its policy meeting Wednesday, the 10th consecutive hike since March 2022.

Although the Fed statement showed a change in the language to the effect that lowers the chances for further rate increases in the future, Powell at the press conference made it clear the Fed will maintain the restrictive policy if necessary as it examines the market impact.

In Seoul, auto and IT blue chips fell. Top automaker Hyundai Motor lost 0.9 percent, and its auto components-making arm Hyundai Mobis slipped 0.7 percent.

Internet portal provider Naver fell 1 percent.

Tech heavyweight Samsung Electronics was down 0.3 percent.

Battery sectors trended higher. Leading player LG Energy Solution gained 0.4 percent, and Samsung SDI rose 0.6 percent.

The local currency was trading at 1,330 won against the US dollar at around 9:15 a.m., up 8.2 won from Wednesday's close. (Yonhap)