Seoul, Oct 8: South Korean equities extended their losses on Thursday as investors turned cautious amid renewed inflation concerns, rising oil prices and expectations of tighter monetary policy in the United States.
The KOSPI index fell 54.22 points, or 0.8 per cent, to 6,749.68 by 11:20 a.m. local time, after opening marginally higher. The decline followed a weaker session on Wall Street, where concerns over inflation and interest rates weighed on investor sentiment.
The overnight weakness in US markets added to pressure on Asian equities. The Dow Jones Industrial Average declined 0.66 per cent, while the Nasdaq Composite fell 0.22 per cent, reflecting continued caution among investors over the outlook for interest rates and corporate borrowing costs.
Foreign investors lead selling
Foreign investors remained major sellers in Seoul, offloading a net 666.37 billion won worth of shares. Institutional investors also recorded net selling of 457.28 billion won, while individual investors provided some support by purchasing a net 834.66 billion won.
The selling pressure highlighted the market’s sensitivity to global interest-rate expectations, particularly as higher oil prices raise concerns that inflation could remain elevated for longer.
Major stocks under pressure
Several large-cap stocks declined during the session. Hyundai Motor fell 3.05 per cent, while Hanwha Aerospace dropped 5.86 per cent and HMM declined 2.57 per cent. Samsung Electronics was also lower, slipping 0.56 per cent.
However, some technology and battery-related stocks bucked the broader trend. Samsung SDI gained 3.74 per cent, while SK hynix rose 1.33 per cent, offering some support to the benchmark.
Oil prices and US rates remain key concerns
Investors are closely monitoring the impact of higher crude oil prices on global inflation. A sustained increase in energy costs could make it more difficult for central banks to ease monetary policy and could keep borrowing costs elevated for longer.
Expectations surrounding the US Federal Reserve’s interest-rate path have therefore emerged as a key driver for global markets. Higher US rates and Treasury yields can encourage investors to shift funds towards dollar-denominated assets, putting additional pressure on emerging and Asian markets.
The Korean won was trading at 1,337.35 against the US dollar, strengthening 1.65 won from the previous close.
Market participants are now watching oil prices, US economic data, Federal Reserve signals and global bond yields for further direction. Continued volatility is expected as investors assess whether inflation pressures will ease or persist.
The weakness in Seoul also underscores the broader caution across Asian markets, with investors balancing corporate earnings prospects against rising energy costs and uncertainty over the global interest-rate outlook.
