Seoul shares narrow losses late Friday morning amid inflation concerns

SEOUL, Sept. 11 (Yonhap) -- Shares on the Korean market fell significantly on Friday, as soaring oil prices and rising inflation concerns weighed on investors ahead of crucial U.S. inflation data. The Korea Composite Stock Price Index (KOSPI) recovered from a 3.29 percent decline in early trading to close down 1.76 percent at 6,909.91 points.

Trading volume was moderate, with 265.92 million shares changing hands, worth a total of 19.39 trillion won ($14.4 billion). While the majority of stocks lost value, with 473 outperforming 368, retail investors added a net 1.87 trillion won in purchases, while institutional and foreign investors collectively sold off a net 1.22 trillion won and 2.29 trillion won, respectively.

The oil price surge triggered a sell-off in U.S. stocks, with the Dow Jones Industrial Average slipping 0.6 percent and the tech-heavy Nasdaq Composite falling 0.65 percent. Key companies such as Samsung Electronics and SK hynix suffered losses of 3.53 percent and 2.21 percent, respectively. Hyundai Motor, a prominent car manufacturer, and battery maker LG Energy Solution also posted declines of 1.67 percent and 1.37 percent, while the top refiner, SK Innovation, saw a sharp drop of 5.42 percent.

Among the few gainers, shipbuilder HD Hyundai Heavy Industries and defense firm Hanwha Aerospace led the surge, with their shares rising by 5.62 percent and 1.31 percent, respectively. The Korean won strengthened slightly, trading at 1,345.9 won per U.S. dollar by the market's close, up from the previous session's end rate of 1,339.2 won.

Bond prices, which decrease as yields rise, fell, with the yield on three-year Treasurys increasing 8.4 basis points to 4.014 percent and five-year government bonds adding 8.1 basis points to 4.267 percent.