Kospi closes down 2.62% to continue slide to third day on inflation worries

Shares closed lower Thursday to extend their losses for a third consecutive session, as elevated oil prices stoked inflation worries. The won strengthened against the dollar.

After opening 0.07 percent higher, the Kospi turned lower to close down 177.97 points, or 2.62 percent, at 6,625.93.

The Dow Jones Industrial Average fell 0.66 percent overnight, while the tech-heavy Nasdaq Composite declined 0.22 percent.

Institutions and foreigners sold a net 1.7 trillion won ($1.2 billion) and 2 trillion won worth of stocks, respectively, while individuals bought a net 2.9 billion won.

Investors seemed wary as higher oil prices are adding to inflationary pressures, and the U.S. Federal Reserve has signaled it may need to raise rates this year to tame inflation.

In Seoul, tech stocks led the decline.

Samsung Electronics fell 2.42 percent to 262,000 won and SK hynix declined 2.44 percent to 1.68 million won.

Defense firm Hanwha Aerospace dropped 8.33 percent to 891,000 won, and shipping firm HMM shed 2.8 percent to 20,800 won.

Among gainers, battery maker Samsung SDI rose 1.25 percent to 569,000 won and LG Energy Solution climbed 2.56 percent to 401,000 won.

The won strengthened by 1.9 won from the previous session to close at 1,338.5 against the dollar as of 3:30 p.m.

Bond prices, which move inversely to yields, closed lower. The yield on three-year government bonds rose 2.2 basis points to 3.98 percent and the return on the benchmark five-year government bonds climbed 2.4 basis points to 4.16 percent.

Yonhap