Seoul Stocks Open Lower as Oil-Fueled Inflation Worries Weigh on Markets

South Korean stocks opened lower on Tuesday as rising oil prices and elevated U.S. Treasury yields renewed concerns about inflation and the outlook for interest rates.

The benchmark Korea Composite Stock Price Index fell 13.31 points, or 0.19 percent, to 6,876.43 as of 9:15 a.m. The decline followed a weaker session on Wall Street, where major U.S. indexes retreated amid renewed tensions between the United States and Iran.

Higher crude prices raised concerns that energy costs could add to inflationary pressure and make it more difficult for central banks to lower borrowing costs. Those worries were reflected in the U.S. bond market, where the benchmark 10-year Treasury yield rose to 5.23 percent and the 30-year yield climbed to 5.55 percent, remaining near multiyear highs.

The S&P 500 lost 0.77 percent overnight, while the Dow Jones Industrial Average declined 0.67 percent. The technology-heavy Nasdaq Composite dropped 0.92 percent. The broad pullback set a cautious tone for trading in Seoul, although moves among major Korean companies were mixed rather than uniformly negative.

Samsung Electronics gained 0.93 percent in early trading, and SK hynix edged up 0.11 percent. Their gains showed some resilience in the semiconductor sector despite the risk-off mood in global markets. Other large-cap shares came under pressure, however. Hyundai Motor fell 1.4 percent, while battery producer LG Energy Solution declined 2.57 percent.

The Korean won traded at 1,359.6 against the U.S. dollar, strengthening by 0.3 won from the previous session's close. The limited currency move contrasted with the sharper changes in energy and bond markets.

Because the figures captured only the first minutes of trading, they represented an early snapshot rather than a final assessment of the session. Even so, the split between gains in the two leading chipmakers and losses in automobile and battery shares illustrated how investors were differentiating among sectors while responding to the broader global sell-off.

The early performance highlighted how developments outside Korea are shaping domestic market sentiment. A sustained rise in oil prices could increase import costs for the energy-dependent Korean economy, while high U.S. yields can influence global capital flows and financial conditions. Investors are therefore watching both Middle East tensions and movements in U.S. interest rates for signs of whether the pressure on equities will persist beyond the opening session.