Seoul shares opened sharply lower Monday, tracking losses on Wall Street, as hawkish comments last week from the US Federal Reserve chief raised the possibility of an imminent rate hike.

After opening 2.58 percent down, the benchmark Korea Composite Stock Price Index trimmed its earlier losses and was trading 163.60 points, or 2.41 percent lower, at 6,625.28 as of 9:15 a.m.

On Friday, the Dow Jones Industrial Average fell 0.02 percent, while the tech-heavy Nasdaq Composite declined 0.52 percent.

In his first major speech as Fed chair, Kevin Warsh warned that inflation remains a concern, leaving the door open to further interest rate hikes. He delivered the remarks at the Fed's annual Jackson Hole symposium in Wyoming on Friday, a venue that has historically been used by Fed chairs to signal shifts in monetary policy direction.

The comments weigh on Asian markets because tighter US monetary policy typically strengthens the dollar and can pressure emerging-market currencies, prompting foreign investors to pull funds from regional equities. South Korea's export-driven market, heavily weighted toward chips and autos, is particularly sensitive to shifts in global rate expectations.

In Seoul, most large-cap stocks declined. Market bellwether Samsung Electronics fell 2.53 percent, while its chipmaking rival SK hynix retreated 2.18 percent. Top carmaker Hyundai Motor declined 0.88 percent, and defense giant Hanwha Aerospace shed 0.09 percent.

Among the gainers, steelmaker POSCO Holdings rose 0.15 percent and leading refiner SK Innovation jumped 5.99 percent.

The Korean won was quoted at 1,377.70 against the US dollar, up 1.8 won from the close of the previous stock trading session. Investors are likely to watch upcoming US inflation data and Fed officials' remarks for further signals on the rate path. (Yonhap)