Kospi opens sharply lower, tracking U.S. losses, amid inflation woes

Shares opened sharply lower Friday, tracking losses on Wall Street, as the latest U.S. inflation data raised the possibility of the U.S. Federal Reserve raising interest rates to curb inflation.

The benchmark Korea Composite Stock Price Index (Kospi) fell 231.42 points, or 3.29 percent, to 6,802.50 at the opening bell.

Overnight, surging oil prices sparked a sell-off in U.S. stocks amid escalating tensions in the Middle East. The Dow Jones Industrial Average fell 0.6 percent, while the tech-heavy Nasdaq Composite declined 0.65 percent.

The U.S. producer price index rose 0.4 percent in August from a month earlier, accelerating from the previous month's 0.1 percent gain, while investors are awaiting Friday's consumer price report for clues about the Fed's future rate path.

Yonhap