Seoul Shares Decline Amid Middle East Tensions and Inflation Fears

Seoul shares fell on Thursday as intensifying tensions in the Middle East drove up oil prices and stoked concerns over inflation. The benchmark Korea Composite Stock Price Index (KOSPI) opened 0.18 percent lower at 7,038.85. By 11:20 a.m. the index had extended its losses to fall 90.41 points, or 1.28 percent, to 6,961.23. The decline followed a negative session on Wall Street where the Dow Jones Industrial Average fell 0.77 percent and the Nasdaq Composite declined 0.64 percent. Market analysts suggest that rising oil prices are fueling fears that the U.S. Federal Reserve may raise interest rates to contain price gains ahead of key U.S. inflation data. In Seoul, tech stocks led the decline with Samsung Electronics falling between 0.74 percent and 1.3 percent depending on the time of reporting. Other losses included LG Energy Solution, which shed 2.83 percent, and Korea Electric Power Corp. which dropped 1.93 percent. Conversely, some stocks saw gains, including Korea Gas, which climbed 1.11 percent, and LIG Defense and Aerospace, which rose 0.45 percent. The Korean won was quoted between 1,337.65 and 1,338.90 against the U.S. dollar during the morning session.