Seoul shares narrow losses late Fri. morning amid inflation concerns

SEOUL, September 10 - The Seoul stock market experienced a brief reprieve from losses early Friday, buoyed by retail investors amid worries over a potential interest rate increase by the U.S. Federal Reserve due to rising oil prices. The Korea Composite Stock Price Index (KOSPI) began the day 3.29 percent lower, but narrowed its decline to 2.23 percent, closing at 6,876.74 points by 11:20 a.m. local time.

Retail investors recorded a net purchase of 1.68 trillion won ($1.24 billion) worth of stocks, while institutional investors and foreigners sold a combined net of 2.35 trillion won. Oil prices surged overnight, prompting a sell-off in U.S. stocks, with both the Dow Jones Industrial Average and the Nasdaq Composite slipping 0.6 percent and 0.65 percent, respectively.

The U.S. producer price index increased by 0.4 percent in August compared to the previous month, heightening investors' anticipation for the upcoming consumer price report on Friday, which could provide insights into the Fed's future rate decisions. Among the biggest losers were Samsung Electronics, SK hynix, Hyundai Motor, and LG Energy Solution.

Conversely, Hanwha Aerospace and Korea Gas showed gains. At 11:20 a.m., the Korean won was trading at 1,347.05 per U.S. dollar, up 2.85 won from the previous trading session.