Seoul market opens sharply lower as U.S. inflation data fuels rate-rise fears
South Korean stocks fell sharply at the opening bell, mirroring declines on Wall Street after U.S. producer price data suggested the Federal Reserve may raise rates.
At the start of trading, the Korea Composite Stock Price Index fell by 231.42 points, roughly 3.3 percent, to 6,802.50, reflecting a sharp opening decline. The slide tracked losses on Wall Street, where the Dow Jones Industrial Average and the Nasdaq Composite each slipped by about 0.6 percent following an increase in the U.S. producer price index for August. The higher producer price reading, up 0.4 percent from the previous month, has revived expectations that the Federal Reserve could tighten policy further.
Meanwhile, surging oil prices and heightened Middle East tensions contributed to the broader market weakness. Investors are now focused on Friday's U.S. consumer price data for additional guidance on the Fed's rate path.
Why it matters
The drop shows how U.S. inflation signals can quickly affect Asian equity markets and investor sentiment.
In this story
