Seoul: Seoul shares ended lower Thursday as surging oil prices, driven by escalating tensions in the Middle East, fueled inflation concerns ahead of the release of key U.S. inflation data. The Korean won rose against the U.S. dollar.
According to Yonhap News Agency, after choppy trading, the benchmark Korea Composite Stock Price Index (KOSPI) fell 17.72 points, or 0.25 percent, to close at 7,033.92. Trade volume was moderate at 418.4 million shares worth 28.19 trillion won (US$21 billion), with losers outnumbering gainers 443 to 416.
Foreign investors sold a net 2.49 trillion won worth of stocks, while institutions and individual investors purchased a net 461.46 billion won and 362.18 billion won, respectively. The decline in Seoul followed a similar downturn in U.S. markets, where stocks ended lower overnight due to the same geopolitical tensions and rising oil prices. The Dow Jones Industrial Average fell 0.77 percent, and the Nasdaq Composite declined 0.64 percent.
Rising oil prices have spurred inflation concerns, prompting speculation that the U.S. Federal Reserve might raise interest rates to manage price increases. Investors are keenly awaiting Friday's U.S. consumer price index (CPI) data for further insights into the Fed's potential rate adjustments.
In Seoul, tech stocks bore the brunt of the decline. Market leader Samsung Electronics fell 0.19 percent to 269,000 won, with its competitor SK hynix dropping 0.16 percent to 1.85 million won. In the battery sector, LG Energy Solution decreased by 1.62 percent to 385,000 won, and the leading refiner SK Innovation slipped 0.26 percent to 561,000 won.
Among the gainers, Hyundai Motor, a top car manufacturer, rose 0.26 percent to 389,000 won, and defense giant Hanwha Aerospace climbed 1.91 percent to 1.07 million won. Meanwhile, the Korean won was quoted at 1,339.2 won per U.S. dollar as of 3:30 p.m., marking a decrease of 3.1 won from the previous session's close.