Kospi falls for second day as oil surge revives inflation fears
Seoul stocks slipped as foreign selling, higher crude prices and rising U.S. Treasury yields weakened investor appetite.
A dealing room display at Hana Bank headquarters in Jung District, central Seoul, shows the Kospi closing down 0.27 percent at 6,870.81 on Sept. 29.
YONHAP
Shares retreated Tuesday as rising oil prices fueled inflation concerns and pushed U.S. Treasury yields higher amid Middle East tensions.
The Kospi lost 18.93 points, or 0.27 percent, to end at 6,870.81, marking its second consecutive session of losses.
The index opened 0.19 percent lower and extended its losses in afternoon trading as foreign and institutional investors sold local shares.
Overnight, U.S. stocks retreated as renewed tensions between Washington and Tehran drove crude oil prices higher, fueling concerns that higher energy costs could keep inflation and interest rates high.
Treasury yields extended their climb, with the benchmark 10-year yield rising to 5.23 percent and the 30-year yield climbing to 5.55 percent, hovering around multiyear highs.
Oil prices rose for a second consecutive session on Tuesday amid lingering concerns about potential supply disruptions in the Middle East stemming from the U.S.-Iran conflict.
Trade volume was light at 210.06 million shares worth 17.99 trillion won ($13.26 billion), with decliners far outnumbering advancers, 622 to 231.
Foreigners sold a net 2.9 trillion won, while individuals and institutions bought a net 1.14 trillion won and 121.06 billion won, respectively.
"The local stock market was bearish as rising U.S. Treasury yields weighed on investor sentiment, while renewed gains in global oil prices further dampened risk appetite," Lee Kyoung-min, an analyst at Daishin Securities, said.
Market heavyweights were mixed.
Samsung Electronics gained 0.93 percent to 272,500 won while SK hynix inched down 0.17 percent to 1.76 million won.
Hyundai Motor fell 1.27 percent to 350,000 won while LG Energy Solution sank 3.16 percent to 352,500 won.
The won strengthened by 8.4 won from the previous session to close at 1,356.7 against the dollar as of 3:30 p.m. on Sept. 29.
Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 4.3 basis points to 4.076, and the return on the benchmark five-year government bond fell 6.9 basis points to 4.276.
Yonhap
