South Korean shares were little changed in early trading on Wednesday as investors weighed higher oil prices, elevated US Treasury yields and uncertainty surrounding the Federal Reserve’s latest interest rate decision.
The benchmark Kospi was up 0.69 points, or 0.01%, at 6,627.95 as of 9:15 a.m., after opening slightly lower.
The cautious opening followed a weaker session on Wall Street overnight, where the S&P 500 fell 0.45% while the Nasdaq declined 0.78% as investors reacted to rising oil prices and higher bond yields.
Brent crude futures climbed more than 2% to above US$108 a barrel on Wednesday amid renewed Middle East tensions. A key Saudi oil pipeline was reportedly hit in an attack this week while Yemen’s Houthi rebels seized more islands along Red Sea shipping routes.
Meanwhile, the 10-year US Treasury yield moved above 5%, adding to concerns over borrowing costs and inflation ahead of the Federal Reserve’s September policy meeting.
In Seoul, major stocks were mixed. Samsung Electronics was flat while SK hynix gained 0.95%.
LG Energy Solution rose 1.78% and Hanwha Aerospace edged up 0.28%, while Hyundai Motor fell 1.23%.
The Korean won strengthened 1.2 won against the US dollar from the previous trading session to 1,365.8 won per US dollar as of 9:15 a.m.
