Seoul Stocks Slide 2.6% Amid Inflation Fears

Seoul's stock market opened sharply lower on Friday, following losses in US stocks. The Korea Composite Stock Price Index dropped by 2.6% to 6,850.80 as of 9:15 a.m., with tech stocks leading the decline. Samsung Electronics fell 3.5%, while SK hynix plummeted 4.48%. Hyundai Motor dropped 2.57%, and LG Energy Solution shed 0.68%. The US producer price index rose 0.4% in August, fueling worries about inflation.

The losses were sparked by overnight surging oil prices amid escalating tensions in the Middle East, which sent a sell-off wave through Wall Street. The Dow Jones Industrial Average fell 0.6%, while the Nasdaq Composite declined 0.65%. Investors are awaiting Friday's consumer price report for clues about the US Federal Reserve's future rate path.

Despite the decline, state-run utility Korea Electric Power Corp. rose 0.15%, and state-run Korea Gas climbed 0.55%. The Korean won was trading at 1,347.55 won against the US dollar as of 9:15 a.m., up 2.35 won from the close of the previous stock trading session.