Seoul shares extend losses late Thursday morning amid inflation concerns
A screen at the dealing room of Hana Bank’s headquarters in Seoul shows the exchange rate, the KOSPI and Kosdaq indices, Thursday. Yonhap
Seoul shares extended their losses late Thursday morning, as surging oil prices, driven by intensifying tensions in the Middle East, stoked inflation concerns ahead of key U.S. inflation data.
After opening 0.18 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) fell 90.41 points, or 1.28 percent, to 6,961.23 as of 11:20 a.m.
Institutions and foreign investors sold a net 1.01 trillion won ($755 million) and 496.38 billion won worth of stocks, respectively, while retail investors bought a net 871.89 billion won worth of stocks.
Overnight, U.S. stocks ended lower amid escalating tensions in the Middle East and rising oil prices. The Dow Jones Industrial Average fell 0.77 percent, while the tech-heavy Nasdaq Composite declined 0.64 percent.
Rising oil prices are fueling concerns about inflation and the possibility of the U.S. Federal Reserve raising interest rates to contain price gains.
In Seoul, tech stocks led the decline.
Market bellwether Samsung Electronics fell 1.3 percent, and its chipmaking rival SK hynix declined 0.59 percent.
Top carmaker Hyundai Motor dropped 1.55 percent, and leading battery maker LG Energy Solution shed 2.83 percent.
Among gainers, LIG Defense & Aerospace rose 0.45 percent, and state-run Korea Gas climbed 1.11 percent.
The Korean won was quoted at 1,337.65 won against the U.S. dollar as of 11:20 a.m., up 2.95 won from the close of the previous stock trading session.