Fed Hawkishness Sparks Market Jitters as Korea Tries to Defend Currency

Fed Chair Kevin Warsh's recent speech at Jackson Hole and subsequent rate hike have sent shockwaves through Wall Street, leaving markets bracing for a possible new tightening cycle.

The Fed officials' dot plot now projects rates to reach 4.1% by the end of this year and next, which is likely to influence Korea's monetary policy as it tries to defend its currency against capital outflows.

Korea Electric Power shares fell 6% over the past month, while KEPCO Engineering & Construction jumped 39%, highlighting the diverging fortunes of nuclear-related stocks amid expectations for new construction projects overseas.