A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 6,954.52 points on Sept. 8, down 40.87 points, or 0.58 percent, from the previous trading session.YONHAP
Seoul shares ended lower Tuesday as investors remained wary of the prospect of U.S. interest rate hikes amid escalating tensions in the Middle East. The won strengthened against the U.S. dollar.
The benchmark Kospi fell 40.87 points, or 0.58 percent, to 6,954.52, snapping its three-day winning streak.
Trade volume was moderate at 331.93 million shares worth 25.96 trillion won ($19.3 billion), with decliners outpacing gainers 632 to 230.
The index opened 0.72 percent higher and turned lower on retail selling after reaching an intraday high of 7,171.52.
Retail investors sold a net 3.05 trillion won worth of stocks, offsetting institutions and foreigners' combined stock purchases valued at 1.29 trillion won.
U.S. stock markets were closed Monday for the Labor Day federal holiday.
Higher energy prices have added to inflation concerns as investors weigh the prospect of further interest rate hikes by the U.S. Federal Reserve.
Friday's inflation report is now in focus for clues on the U.S. central bank's future interest rate path.
In the latest development in the Middle East, Tehran said a deal with Oman to manage shipping through the Strait of Hormuz was imminent while warning that ships faced the risk of attack off the Omani coast.
"OpenAI's next-generation artificial intelligence model 'GPT-6 Astra initially helped boost semiconductor stocks, but investor concerns over U.S. rate hikes weighed on the index," Lim Seung-mi, an analyst at Hana Securities, said.
A trader works at Hana Bank's dealing room in central Seoul on Sept. 8, as the Kospi closed at 6,954.52, down 40.87 points, or 0.58 percent, from the previous session.YONHAP
In Seoul, large-cap stocks were mixed.
Market bellwether Samsung Electronics fell 0.19 percent to 269,500 won, and leading battery maker LG Energy Solution declined 3.86 percent to 348,500 won.
Top carmaker Hyundai Motor dropped 2.04 percent to 385,000 won, and defense giant Hanwha Aerospace shed 1.15 percent to 1.03 million won.
Among gainers, Samsung Electronics' chipmaking rival SK hynix rose 0.56 percent to 1.79 million won, and state-run utility Korea Electric Power climbed 4.12 percent to 34,100 won.
The won weakened by 5.1 won from the previous session to stand at 1,345.6 won against the U.S. dollar as of 3:30 p.m.
