Kospi Takes Hit as Oil Prices Surge and Inflation Fears Rise
The Korea Composite Stock Price Index (Kospi) in South Korea opened lower on Thursday due to declines in US stock indexes and rising tensions in the Middle East. Higher oil prices also contributed to concerns about inflation ahead of key US inflation data releases.
Kospi initially dropped 0.18% but continued to decline, losing 20.11 points or 0.29%, to reach 7,031.53 points by 9:15 a.m. The previous day saw US stock markets close in negative territory, with the Dow Jones Industrial Average falling 0.77% and the Nasdaq Composite declining 0.64%. Rising oil prices sparked fears of inflation and potential interest rate hikes by the US Federal Reserve.
Major companies on the Seoul market showed mixed performance, with Samsung Electronics shares down 0.74%, Samsung SDI dropping 1.05%, and Korea Electric Power Corp. losing 1.93%. However, SK hynix rose 0.05% and Hyundai Motor gained 0.52%.