Seoul Shares Close Lower Amid Middle East Tensions and Inflation Fears

The benchmark Korea Composite Stock Price Index (KOSPI) fell 17.72 points, or 0.25 percent, to close at 7,033.92 on Thursday. The decline was driven by surging oil prices resulting from escalating tensions in the Middle East, which fueled concerns over inflation ahead of the release of key U.S. consumer price index (CPI) data. Analysts noted that investors are awaiting the U.S. data for clues regarding the future interest rate path of the Federal Reserve.

Tech stocks led the decline in Seoul. Samsung Electronics fell 0.19 percent to 269,000 won, and SK hynix declined 0.16 percent to 1.85 million won. LG Energy Solution dropped 1.62 percent to 385,000 won, while SK Innovation shed 0.26 percent to 561,000 won. Conversely, Hyundai Motor rose 0.26 percent to 389,000 won, and Hanwha Aerospace climbed 1.91 percent to 1.07 million won.

Market activity saw foreigners sell a net 2.49 trillion won worth of stocks. Institutions and individuals bought a net 461.46 billion won and 362.18 billion won, respectively. Trade volume reached 418.4 million shares worth 28.19 trillion won. The Korean won was quoted at 1,339.2 won per U.S. dollar as of 3:30 p.m. which was down 3.1 won from the previous session. While most reports state the won rose against the dollar, one center lean source reported that the won fell.

Overnight, U.S. markets also declined. The Dow Jones Industrial Average fell 0.77 percent and the Nasdaq Composite declined 0.64 percent. In the bond market, the yield on three year Treasurys rose 2 basis points to 3.930 percent, and the return on benchmark five year government bonds added 5 basis points to 4.186 percent.