Seoul, Sep 8: South Korean stocks lost much of their early momentum on Tuesday as investors turned cautious ahead of key US inflation data and remained concerned about the impact of rising geopolitical tensions.

The Kospi had climbed above the 7,000-point mark during the session but later pared most of its gains as selling increased. The move reflected growing caution among investors as they assessed the outlook for inflation, interest rates and global economic growth.

Retail investors were active sellers, with reports indicating that they sold shares worth around $2.3 billion. The selling added pressure to the market after the recent rally in South Korean equities.

Chipmakers and energy stocks, which had helped drive the market higher earlier in the session, also gave up part of their gains. The technology sector remains closely watched as investors assess the outlook for artificial intelligence and semiconductor demand.

Market sentiment was also influenced by the continuing US-Iran conflict and its impact on global energy prices. Rising crude oil prices have increased concerns about inflation and the possibility of tighter monetary policy. Brent crude moved close to $100 a barrel amid heightened tensions in the Middle East.

Investors are now looking ahead to upcoming US inflation figures, which could provide fresh clues about the Federal Reserve’s interest-rate outlook. Asian markets have been particularly sensitive to changes in US rate expectations and movements in the dollar and bond yields.

Despite the late selling, the Kospi remained supported by strong gains in several major technology and industrial stocks. The index had earlier crossed 7,000 points during Tuesday’s session for the first time in 15 sessions.

The latest market movement highlights the cautious mood among investors as they balance strong interest in technology stocks with concerns over inflation, interest rates and geopolitical risks.