Seoul shares fell sharply Friday as surging oil prices heightened inflation concerns, with investors awaiting key US inflation data for clues about the Federal Reserve's future interest rate policy.
The Korean won fell against the US dollar.
After opening 3.29 percent lower, the benchmark Korea Composite Stock Price Index narrowed its losses to close 124.01 points, or 1.76 percent, down at 6,909.91.
Trade volume was moderate at 265.92 million shares worth 19.39 trillion won ($14.4 billion), with losers outnumbering gainers 473 to 368.
Individuals bought a net 1.87 trillion won worth of stocks, while institutions and foreigners sold a net 1.22 trillion won and 2.29 trillion won, respectively.
Overnight, surging oil prices sparked a sell-off in US stocks amid escalating tensions in the Middle East.
The Dow Jones Industrial Average fell 0.6 percent, while the tech-heavy Nasdaq Composite declined 0.65 percent.
All eyes are on the US consumer price index report due out Friday (US time) to gauge whether higher energy costs are adding to inflationary pressures.
In Seoul, tech stocks led the decline.
Market bellwether Samsung Electronics fell 3.53 percent to 259,500 won, and its chipmaking rival SK hynix declined 2.21 percent to 1.81 million won.
Top carmaker Hyundai Motor dropped 1.67 percent, leading battery maker LG Energy Solution dropped 1.37 percent to 360,000 won, and No. 1 refiner SK Innovation shed 5.42 percent to 144,800 won.
Among gainers, leading shipbuilder HD Hyundai Heavy Industries jumped 5.62 percent to 479,000 won, and defense giant Hanwha Aerospace climbed 1.31 percent to 1.08 million won.
The Korean won was quoted at 1,345.9 won per US dollar as of 3:30 p.m., compared with 1,339.2 won from the previous stock trading session's close. (Yonhap)
