Seoul stocks open lower on inflation woes

Korean stocks commenced their trading session on Tuesday in a downbeat manner, mirroring the losses observed on Wall Street. Inflationary pressures, exacerbated by surging oil prices, cast a shadow over the market as they contributed to a rise in U.S. Treasury yields. Amidst geopolitical tensions in the Middle East, the benchmark Korea Composite Stock Price Index, or KOSPI, witnessed a decline of 13.31 points, marking a 0.19 percent decrease, at 6,876.43 as of 9:15 a.m.

The previous evening, U.S. equities experienced a retreat following heightened tensions between the United States and Iran, which led to an uptick in crude oil prices. This development raised apprehensions regarding the persistence of elevated energy costs, which could perpetuate inflation and drive interest rates to multiyear highs.

The yields on U.S. Treasuries continued their upward trajectory, with the benchmark 10-year yield reaching 5.23 percent and the 30-year yield climbing to 5.55 percent, both hovering near multiyear peaks.

The S&P 500 experienced a 0.77 percent drop, the Dow Jones Industrial Average slipped by 0.67 percent, and the tech-driven Nasdaq composite suffered a 0.92 percent decline. Among the major market players, Samsung Electronics emerged as a standout performer, surging by 0.93 percent, while SK hynix, a prominent chip manufacturer, saw a modest gain of 0.11 percent.

Conversely, leading automobile manufacturer Hyundai Motor saw a decline of 1.4 percent, while battery producer LG Energy Solution experienced a steeper drop of 2.57 percent. The Korean won found itself under pressure as well.