Seoul Shares End 0.3% Lower

South Korean stocks closed 0.32 percent lower Tuesday as investors took a breather ahead of an announcement of a U.S. bank bailout plan. The local currency inched down against the U.S. dollar.

Reversing earlier gains, the benchmark Korea Composite Stock Price Index (KOSPI) declined 3.82 points to 1,198.87. Volume was moderate at 461.8 million shares worth 4.07 trillion won ($2.94 billion), but gainers outnumbered losers 423 to 391.

"Investors turned cautious ahead of an imminent announcement of a U.S. bank rescue plan and the passage of the economic stimulus package in the Senate," Lee Sun-yup, an analyst at Goodmorning Shinhan Securities, was quoted as saying by Yonhap News. "Foreigners took profits, viewing the 1,200-point as a resistance level.''

The key stock index started stronger, shrugging off overnight falls in U.S. markets. But in the morning session, the KOSPI turned lower as foreigners extended their sales of Seoul stocks, ending a buying spree of nine straight sessions. They sold a net 216.2 billion won worth of local stocks on the main bourse.

Large caps traded in negative territory. Market leader Samsung Electronics fell 1.33 percent to 520,000 won and top steel maker POSCO shed 0.89 percent to 390,500 won.

But chip giant Hynix Semiconductor rose 1.9 percent to 9,630 won on expectations for recovery of the chipmaking industry. Ssangyong Motor, which won the court's approval for bankruptcy protection last week, jumped nearly by the daily limit of 15 percent to 1,295 won.

The local currency ended at 1,382.9 won to the dollar, down 1.9 won from Monday's close, as offshore investors unloaded local stocks.