Kospi tumbles 1.76% as rising oil prices stoke inflation concerns
The main bourse slid 124.04 points to close at 6,909.91, while the won dropped to trade at 1,345.9 against the dollar.
A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 6,909.91 points on Sept. 11, down 124.01 points, or 1.76 percent, from the previous trading session.
YONHAP
Shares fell sharply Friday as surging oil prices heightened inflation concerns, with investors awaiting key U.S. inflation data for clues about the Federal Reserve's future interest rate policy.
The won fell against the dollar.
After opening 3.29 percent lower, the Kospi narrowed its losses to close 124.01 points, or 1.76 percent, down at 6,909.91.
Trade volume was moderate at 265.92 million shares worth 19.39 trillion won ($14.4 billion), with losers outnumbering gainers 473 to 368.
Individuals bought a net 1.87 trillion won worth of stocks, while institutions and foreigners sold a net 1.22 trillion won and 2.29 trillion won, respectively.
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.
All eyes are on the U.S. consumer price index report due Friday to gauge whether higher energy costs are adding to inflationary pressures.
In Seoul, tech stocks led the decline.
Market bellwether Samsung Electronics fell 3.53 percent to 259,500 won, and its chipmaking rival SK hynix declined 2.21 percent to 1.81 million won.
Top carmaker Hyundai Motor dropped 1.67 percent, leading battery maker LG Energy Solution dropped 1.37 percent to 360,000 won, and No. 1 refiner SK Innovation shed 5.42 percent to 144,800 won.
Among gainers, leading shipbuilder HD Hyundai Heavy Industries jumped 5.62 percent to 479,000 won, and defense giant Hanwha Aerospace climbed 1.31 percent to 1.08 million won.
The local currency fell 6.7 won from the previous session to trade at 1,345.9 against the greenback at 3:30 p.m.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 8.4 basis points to 4.014 percent, and the return on the benchmark five-year government bonds added 8.1 basis points to 4.267 percent.
Yonhap
