Seoul shares extend losses late Mon. morning on tech sell-off
Quick Look
Seoul shares declined 2.28% to 6,474.95 as technology stocks led losses amid rising oil prices and escalating Middle East tensions, with foreigners net selling 699.27 billion won in stocks despite gains on Wall Street.
AI-generated summary
Why It Matters
Seoul shares opened lower and extended losses as technology stocks declined amid rising oil prices and Middle East tensions, with foreigners net selling stocks despite Friday's gains on Wall Street.
SEOUL, Oct. 12 (Yonhap) -- Seoul shares extended their losses late Monday morning, led by declines in technology stocks, as elevated oil prices and escalating tensions in the Middle East fueled inflation concerns.
After opening 0.72 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) fell 150.98 points, or 2.28 percent, to 6,474.95 as of 9:15 a.m.
Foreigners sold a net 699.27 billion won (US$524 million) worth of stocks, while institutions and individuals bought a net 3.25 billion won and 441.74 billion won, respectively.
The decline came despite gains on Wall Street on Friday (U.S. time).
The Dow Jones Industrial Average rose 0.83 percent on Friday (local time), while the tech-heavy Nasdaq Composite climbed 0.64 percent.
Oil prices rose amid escalating tensions in the Middle East following renewed Houthi attacks on Saudi Arabia's main airport over the weekend.
A broader regional conflict could further disrupt energy supplies, stoking inflation and increasing pressure on the Federal Reserve to raise interest rates.
In Seoul, tech stocks led the decline.
Market behemoth Samsung Electronics fell 2 percent, and its chipmaking rival SK hynix declined 2.86 percent.
Defense giant Hanwha Aerospace dropped 2.58 percent, and leading shipbuilder HD Hyundai Heavy Industries plunged 3.91 percent.
Among gainers, No. 2 carmaker Kia rose 0.94 percent, and shipping firm HMM jumped 5.29 percent.
The Korean won was trading at 1,335.35 won against the U.S. dollar as of 11:20 a.m., up 6.65 won from the previous stock trading session's close.
What to Watch
AI outlook — possibilities, not facts
Oil prices may continue to rise if Middle East tensions escalate further
Possible · Within weeks
Inflation concerns may increase pressure on the Federal Reserve to raise interest rates
Possible · Within weeks
Open Questions
- How long will Middle East tensions continue to affect oil prices?
- Will the Federal Reserve respond to inflation concerns with interest rate hikes?
- Which sectors beyond technology may be impacted by prolonged energy price increases?
