Seoul shares open sharply lower, tracking US losses, amid inflation woes
Summary
Seoul shares opened sharply lower Friday, tracking Wall Street losses as U.S. inflation data raised the possibility of Federal Reserve interest-rate hikes. The KOSPI fell 2.6 percent to 6,850.80 by 9:15 a.m. Tech stocks led the decline, with Samsung Electronics and SK hynix both dropping sharply. The Korean won traded at 1,347.55 per U.S. dollar, up 2.35 won from the previous session.
Key Facts
- After opening 3.29 percent lower, the benchmark KOSPI was down 183.12 points, or 2.6 percent, at 6,850.80 as of 9:15 a.m.
- The U.S. producer price index rose 0.4 percent in August from a month earlier.
- Samsung Electronics fell 3.5 percent, while SK hynix plunged 4.48 percent.
- Hyundai Motor dropped 2.57 percent and LG Energy Solution shed 0.68 percent.
- The Korean won traded at 1,347.55 won against the U.S. dollar as of 9:15 a.m., up 2.35 won from the previous stock trading session.
The Korea Composite Stock Price Index (KOSPI) is shown on a screen at a dealing room of Hana Bank in central Seoul, Friday. Yonhap
Seoul shares opened sharply lower Friday, tracking losses on Wall Street, as the latest U.S. inflation data raised the possibility of the U.S. Federal Reserve raising interest rates to curb inflation.
After opening 3.29 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) narrowed the losses, dropping 183.12 points, or 2.6 percent, to 6,850.80 as of 9:15 a.m.
Overnight, surging oil prices sparked a sell-off in U.S. stocks amid escalating tensions in the Middle East. The Dow Jones Industrial Average fell 0.6 percent, while the tech-heavy Nasdaq Composite declined 0.65 percent.
The U.S. producer price index rose 0.4 percent in August from a month earlier, while investors are awaiting Friday's consumer price report for clues about the Fed's future rate path.
In Seoul, tech stocks led the decline.
Market bellwether Samsung Electronics fell 3.5 percent, and its chipmaking rival SK hynix plunged 4.48 percent.
Top carmaker Hyundai Motor dropped 2.57 percent, and leading battery maker LG Energy Solution shed 0.68 percent.
Among gainers, state-run utility Korea Electric Power Corp. rose 0.15 percent, and state-run Korea Gas climbed 0.55 percent.
The Korean won was trading at 1,347.55 won against the U.S. dollar as of 9:15 a.m., up 2.35 won from the close of the previous stock trading session.
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