Seoul stocks extend losses Monday morning ahead of earnings reports, Fed decision
A screen at the dealing room of Hana Bank’s headquarters in Seoul shows the exchange rate and the KOSPI index, Monday. Yonhap
Korean stocks traded lower late Monday morning as investors remained cautious ahead of third-quarter earnings reports from major chipmakers and the U.S. Federal Reserve's monetary policy decision later this week.
After opening 0.92 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its earlier losses to trade down 71.49 points, or 1.29 percent, to 5,478.81 as of 11:20 a.m.
Investors are awaiting earnings reports from SK hynix on Wednesday and Samsung Electronics on Thursday for clues about the outlook for artificial intelligence (AI) chip demand and memory prices.
Investors are also keeping a close eye on the Federal Reserve's two-day policy meeting starting Tuesday (U.S. time), with the central bank widely expected to keep interest rates unchanged amid persistent inflationary pressures.
Market heavyweights fell across the board.
Market bellwether Samsung Electronics shed 1.62 percent, while chip giant SK hynix inched up 0.08 percent.
Battery maker LG Energy Solution decreased 1.7 percent, while top automaker Hyundai Motor went down 2.88 percent.
Defense company LIG D&A tumbled 10.67 percent on news that South Korea's arms procurement agency is considering revoking the firm's defense contractor designation in a small drone project over bribery allegations.
The Korean won was trading at 1,323.0 won against the U.S. dollar at 11:20 a.m., up 3.2 won from the close of the previous session.