(LEAD) Seoul shares dip 1.76 pct on rising oil prices, inflation woes

Seoul shares plunged 1.76% on Friday due to escalating oil prices and inflationary worries, as investors eagerly anticipated U.S. inflation data to gauge the Federal Reserve's upcoming interest rate strategy. The Korea Composite Stock Price Index (KOSPI) initially plunged 3.29% before steadying at a decline of 1.76%. With a moderate trading volume of 265.92 million shares amounting to 19.39 trillion won (US$14.4 billion), the losses outnumbered gains by a ratio of 473 to 368.

Retail investors were the buyers, purchasing 1.87 trillion won worth of stocks, while institutions and foreigners sold a combined 3.51 trillion won worth of shares.

The oil price surge triggered a sell-off in U.S. stocks amid escalating Middle East tensions, with the Dow Jones Industrial Average falling 0.6% and the tech-focused Nasdaq Composite slipping 0.65%. Analysts are keenly watching the U.S. Consumer Price Index (CPI) report slated for Friday to ascertain whether rising energy costs are exacerbating inflationary pressures.

Among the biggest decliners were Samsung Electronics, down 3.53% to 259,500 won; SK hynix, falling 2.21% to 1.81 million won; Hyundai Motor, dropping 1.67%; battery maker LG Energy Solution, which decreased 1.37% to 360,000 won; and the top refiner SK Innovation, which plummeted 5.42% to 144,800 won. Gainers included shipbuilder HD Hyundai Heavy Industries, up 5.62% to 479,000 won, and defense firm Hanwha Aerospace, which rose 1.31% to 1.08 million won.

The Korean won traded at 1,345.9 per U.S. dollar as of 3:30 p.m., reflecting a slight improvement from the previous trading session's close of 1,339.2 won.