South Korean shares opened sharply lower on Sept 11, with the benchmark Kospi sliding 231.42 points, or 3.29%, to 6,802.50, as investors tracked Wall Street losses and reassessed the risk of another US Federal Reserve (Fed) rate hike.
According to Yonhap, sentiment weakened after US producer prices rose 0.4% in August from the previous month, accelerating from July’s 0.1% increase and reinforcing concerns that inflation remains sticky enough to prompt tighter monetary policy.
Wall Street had already come under pressure overnight as surging oil prices and escalating Middle East tensions added to inflation worries. The Dow Jones Industrial Average fell 0.6%, while the tech-heavy Nasdaq Composite declined 0.65%.
The combination of firmer US inflation, elevated energy prices and weaker global equities weighed heavily on Seoul at the opening bell.
Investors are now awaiting the US consumer price data for further clues on the Fed’s next move, with the report likely to play a key role in shaping expectations ahead of its upcoming policy meeting.
