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 fell against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) experienced a decline, falling 17.72 points, or 0.25 percent, to close at 7,033.92 after a session of choppy trading. Trade volume remained moderate, with 418.4 million shares valued at 28.19 trillion won (US$21 billion) exchanging hands. The market saw more losers than gainers, with 443 stocks declining compared to 416 advancing.
Foreign investors contributed to the downward trend by selling a net 2.49 trillion won worth of stocks. In contrast, institutions and individual investors showed buying interest, purchasing a net 461.46 billion won and 362.18 billion won, respectively.
The negative sentiment in Seoul mirrored overnight losses in U.S. stocks, where the Dow Jones Industrial Average fell by 0.77 percent and the Nasdaq Composite declined by 0.64 percent. The rising oil prices have heightened concerns about inflation, with the possibility of the U.S. Federal Reserve raising interest rates to control price increases.
Investors are now closely watching Friday's U.S. consumer price index (CPI) data, which is expected to provide insights into the Fed's future rate decisions. Analysts highlighted that tech stocks were particularly affected in Seoul.
Market leaders Samsung Electronics and SK hynix saw declines, with Samsung Electronics dropping 0.19 percent to 269,000 won, and SK hynix falling 0.16 percent to 1.85 million won. LG Energy Solution, a prominent battery maker, decreased by 1.62 percent to 385,000 won, while SK Innovation, a leading refiner, shed 0.26 percent to 561,000 won.
Conversely, some sectors experienced gains. Hyundai Motor, a top carmaker, rose by 0.26 percent to 389,000 won, and defense company Hanwha Aerospace increased by 1.91 percent to 1.07 million won.
The Korean won was quoted at 1,339.2 won per U.S. dollar by 3:30 p.m., marking a decrease of 3.1 won from the previous session's close. In the bond market, prices fell, leading to a rise in yields. The yield on three-year Treasurys increased by 2 basis points to 3.930 percent, while the return on five-year government bonds rose by 5 basis points to 4.186 percent.