Seoul shares erase earlier losses late Wed. morning after U.S. inflation data

SEOUL, Seoul shares erased earlier losses late Wednesday morning after hotter-than-estimated U.S. inflation data. The benchmark Korea Composite Stock Price Index (KOSPI) fell 34.89 points, or 1.32 percent, to 2,614.75 as of 11:20 a.m. Institutions and foreigners sold a combined 476 billion won (US$356 million) worth of stocks, offsetting individuals' stock purchases valued at 465 billion won. Overnight, the Dow Jones Industrial Average fell 1.4 percent to 38,272.75, and the tech-heavy Nasdaq declined 1.8 percent to 15,655.60. Investors have been expecting the U.S. Federal Reserve to start cutting interest rates this year amid hope for eased inflation. But January's consumer price index report threw cold water on such expectations. In Seoul, most large-cap stocks declined. Market bellwether Samsung Electronics Co. fell 1.7 percent, No. 2 chipmaker SK hynix Inc. declined 0.7 percent, leading battery maker LG Energy Solution Ltd. dropped 2.3 percent, and No. 2 carrier Asiana Airlines Inc. plunged 7.2 perc ent. Among gainers, leading carmaker Hyundai Motor Co. rose 0.4 percent, leading budget carrier Jeju Air Co. climbed 0.4 percent, and Korea Aerospace Industries Co., the country's sole aircraft manufacturer, was up 0.8 percent. The local currency was trading at 1,336.80 won against the U.S. dollar, down 8.7 won from the previous session's close. Source: Yonhap News Agency