South Korea's Kospi closed lower on Thursday as surging oil prices amid escalating Middle East tensions stoked inflation concerns ahead of key U.S. inflation data.
Investors awaited the U.S. producer price index due later Thursday and consumer inflation data on Friday, which could influence the U.S. Federal Reserve's interest-rate outlook.
The Korea Composite Stock Price Index, or Kospi, decreased by 17.72 points, or about 0.3%, to close at 7,033.92. The Kosdaq, however, rose by 6.55 points, or 0.8%, to close at 836.92.
Reports of explosions in Iran's coastal regions added to geopolitical uncertainty, while U.S. President Donald Trump said the war could end after November's midterm elections and predicted lower oil prices.
Explosions in Iran's coastal regions added to geopolitical uncertainty, while President Donald Trump said the war could end after November's midterm elections. Brent crude was little changed at $101.22 a barrel, and WTI rose 0.3% to $96.33..
In economic news, South Korea plans to put in place measures that boost economic recovery and growth through structural reforms, Deputy Prime Minister Koo Yun-cheol said at the Economic Relations Ministers' Meeting on Wednesday.
Koo noted that nominal gross domestic product rose 26.4% in the second quarter on an on-year basis, which was the fastest growth in 47 years, while employment increased by 184,000 in August.
Koo expects that it'll be faster to achieve a per capita gross national income of $40,000.
The government plans to unveil steel industry upgrade measures in Q4 and ease regulations on Knowledge Industry Centers, alongside inspections targeting fraudulent activities.
In corporate news, S-Oil (KRX:010950) secured a petroleum products supply agreement worth 4.115 trillion won from NongHyup Agribusiness Group, according to a Thursday filing with the Korea Exchange.
The petroleum products will be supplied across the country's central region, including Seoul, Incheon, Daejeon, and Sejong, and the southern region, including Busan, Daegu, and Ulsan, the filing said.
Shares of S-Oil fell over 7% at market close.