Kospi Dives as Inflation Worries Spark Rate Hike Fears

The Korea Composite Stock Price Index (Kospi) opened sharply lower on Friday, mirroring losses on Wall Street.

The drop was triggered by the latest U.S. inflation data, which showed a 0.4 percent rise in the producer price index for August, exceeding the previous month's gain of 0.1 percent.

This uptick has increased speculation about a potential rate hike from the Federal Reserve to combat inflation.

The Kospi fell 231.42 points, or 3.29 percent, to 6,802.50 at the opening bell, as investors await Friday's consumer price report for further clues on the Fed's future rate path.