(LEAD) Seoul shares open sharply lower, tracking U.S. losses, amid inflation woes

SEOUL, September 11 (Yonhap) -- In the early hours of Friday, Seoul shares initiated the day with a sharp decline, mirroring the losses seen on Wall Street, as the recent U.S. inflation data fueled speculation of the U.S. Federal Reserve raising interest rates to curb inflation concerns. The benchmark Korea Composite Stock Price Index (KOSPI) initially fell 3.29 percent, shedding 183.12 points, or 2.6 percent, to settle at 6,850.80 by 9:15 a.m. The previous night, a surge in oil prices triggered a sell-off in U.S. stocks, exacerbated by escalating tensions in the Middle East.

Consequently, the Dow Jones Industrial Average slipped by 0.6 percent, while the tech-focused Nasdaq Composite dipped 0.65 percent. The U.S. producer price index increased by 0.4 percent in August compared to the prior month, leaving investors eagerly anticipating Friday's consumer price report for insights into the Fed's future rate trajectory.

Notable declines included Samsung Electronics at 3.5 percent, SK hynix at 4.48 percent, Hyundai Motor at 2.57 percent, and LG Energy Solution at 0.68 percent. Conversely, state-run utility Korea Electric Power Corp. recorded a modest gain of 0.15 percent, and state-run Korea Gas experienced a rise of 0.55 percent. At 9:15 a.m., the Korean won traded at 1,347.55 won per U.S. dollar, a 2.35 won increase from the preceding day's closing figures.