South Korean shares ended lower to snap their four-day winning streak Monday as Saudi Arabia and other OPEC+ members' announcement of surprise output cuts are raising renewed concerns over inflation. The Korean won sharply fell against the US dollar.
The benchmark Korea Composite Stock Price Index fell 4.52 points, or 0.18 percent, to close at 2,472.34. Trading volume was moderate at 801.73 million shares worth 11.16 trillion won ($8.5 billion), with gainers outpacing decliners 510 to 370.
The oil producers' output cuts come just after data showed that US inflation may slow down at some point.
The personal consumption expenditure price index, an inflation gauge closely watched by the Federal Reserve, rose at a slower-than-expected rate of 0.3 percent in February.
On Friday, the Dow Jones Industrial Average rose 1.3 percent, and the tech-heavy Nasdaq Composite jumped 1.7 percent amid hopes that the Fed may slow down its monetary tightening after the PCE data showed signs of easing.
"Oil prices surged after oil producers announced surprise cuts, fueling worries over inflation. Foreigners and institutions expanded their net selling, weighing on the Kospi index," Park Hee-cheol, an analyst at Mirae Asset Securities Co., said.
Foreigners and institutions sold a combined 495 billion won, exceeding individuals' stock purchases valued at 479 billion won.
In Seoul, tech, auto and airline stocks were lead decliners.
Market bellwether Samsung Electronics Co. fell 1.4 percent to 63,100 won, No. 2 chipmaker SK hynix Inc. declined 1.6 percent to 87,200 won, top carmaker Hyundai Motor Co. dropped 0.5 percent to 183,600 won, and national flag carrier Korean Air Co. shed 0.2 percent to 23,150 won.
Among gainers, leading refiner SK Innovation Co. rose 0.4 percent to 180,000 won, S-Oil Corp. climbed 2.6 percent to 82,200 won, and leading steelmaker Posco Holdings gained 6.5 percent to 392,000 won.
The local currency ended at 1,316.5 won against the US dollar, down 14.6 won from the previous session's close. (Yonhap)
