Seoul Stocks Decline for Second Day Amid Inflation Concerns

South Korean shares experienced a decline for the second consecutive day, primarily due to concerns regarding rising inflation driven by escalating oil prices.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 18.93 points, or 0.27 percent, closing at 6,870.81. This marks a continuation of the bearish trend observed in the previous trading session.

Investor sentiment was negatively impacted as foreign and institutional investors sold off local shares. The market opened lower and extended its losses throughout the day, reflecting broader concerns over inflation and rising U.S. Treasury yields.

Analysts noted that the renewed tensions in the Middle East, particularly between the U.S. and Iran, have contributed to rising oil prices, further exacerbating inflation fears. The increase in energy costs is likely to keep inflation and interest rates elevated, which is concerning for investors.

Market heavyweights showed mixed results, with Samsung Electronics gaining slightly while Hyundai Motor and LG Energy Solution saw declines. The Korean won, however, strengthened against the U.S. dollar, indicating some resilience in the currency despite the stock market downturn.