Seoul: Seoul shares ended lower Tuesday as investors remained wary of the prospect of U.S. interest rate hikes amid escalating tensions in the Middle East. The Korean won strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) fell 40.87 points, or 0.58 percent, to 6,954.52, snapping its three-day winning streak.
According to Yonhap News Agency, the index opened 0.72 percent higher and turned lower on retail selling after reaching an intraday high of 7,171.52. Retail investors sold a net 3.05 trillion won (US$2.26 billion) worth of stocks, offsetting institutions and foreigners' combined stock purchases valued at 1.29 trillion won.
U.S. stock markets were closed Monday for the Labor Day federal holiday. Higher energy prices have added to inflation concerns as investors weigh the prospect of further interest rate hikes by the U.S. Federal Reserve. Friday's inflation report is now in focus for clues on the U.S. central bank's future interest rate path.
In the latest development in the Middle East, Tehran said a deal with Oman to manage shipping through the Strait of Hormuz was imminent while warning that ships faced the risk of attack off the Omani coast.