Key facts
- Seoul shares narrowed losses late Friday morning amid concerns over a potential US Federal Reserve rate hike due to higher oil prices.
- The KOSPI dropped 157.18 points, or 2.23 percent, to 6,876.74 as of 11:20 a.m. Friday.
- Individuals bought a net 1.68 trillion won (US$1.24 billion) in stocks.
- Institutions and foreigners sold a net 1.04 trillion won and 1.31 trillion won, respectively.
- The U.S. producer price index rose 0.4 percent in August from a month earlier.
- The Korean won was quoted at 1,347.05 won against the U.S. dollar, up 2.85 won from the previous session's close.
Seoul shares narrowed losses late Friday morning, with the benchmark Korea Composite Stock Price Index (KOSPI) dropping 2.23 percent to 6,876.74 as of 11:20 a.m. The index had opened 3.29 percent lower. Retail investors provided support by buying a net 1.68 trillion won (US$1.24 billion) worth of stocks, while institutions and foreigners sold net 1.04 trillion won and 1.31 trillion won, respectively. The market sentiment was influenced by concerns over a potential interest rate hike by the U.S. Federal Reserve, driven by higher oil prices and rising inflation indicators. Overnight, U.S. stocks experienced a sell-off, with the Dow Jones Industrial Average falling 0.6 percent and the Nasdaq Composite declining 0.65 percent, amid escalating Middle East tensions. The U.S. producer price index rose 0.4 percent in August from the previous month, and investors are awaiting the consumer price report for further clues on the Fed's monetary policy path. In Seoul, major technology stocks led the decline, with Samsung Electronics falling 4 percent and SK hynix down 3.45 percent. Automaker Hyundai Motor dropped 2.31 percent, and battery maker LG Energy Solution shed 2.81 percent. Among the gainers, defense firm Hanwha Aerospace rose 0.75 percent, and state-run Korea Gas climbed 0.82 percent. The Korean won was quoted at 1,347.05 won against the U.S. dollar, up 2.85 won from the previous session's close.