SEOUL– Seoul shares extended losses late Wednesday morning as investors assess higher-than-expected U.S. inflation data and the Federal Reserve’s comments suggesting further rate hikes to tame inflation.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 28.51 points, or 1.16 percent, to 2,437.13 as of 11:20 a.m.
Overnight, U.S. stocks ended mixed, with the Dow Jones Industrial Average falling 0.5 percent to 34,089.27 and the tech-heavy Nasdaq Composite rising 0.6 percent to 11,960.15.
The U.S. Consumer Price Index data showed prices advanced by a higher-than-expected 0.5 percent in January. The Fed said it is not done yet in its monetary tightening to battle inflation.
Institutions and foreigners sold a combined 581 billion won (US$455 million) worth of stocks, offsetting individuals’ stock purchases valued at 568 billion won.
In Seoul, most large-cap stocks declined.
Market bellwether Samsung Electronics Co. fell 1.4 percent, No. 2 chipmaker SK hynix Inc. declined 1.9 percent, top carmaker Hyundai Motor Co. dropped 0.6 percent, and national flag carrier Korean Air Co. shed 0.9 percent.
Among gainers, No. 2 steelmaker Hyundai Steel Co. rose 1.8 percent, leading car battery maker LG Energy Solution climbed 1.9 percent, and No. 1 chemical firm LG Chem Ltd. gained 0.2 percent.
The local currency was trading at 1,276.65 won against the U.S. dollar, down 7.25 won from the previous session’s close.
Source: Yonhap News Agency