Seoul shares down late Tuesday morning amid eased US downgrade woes

This photo shows a dealing room at Hana Bank in central Seoul, Tuesday. Yonhap)

Korean stocks trimmed earlier gains late Tuesday morning amid the fading concerns of the U.S. credit rating downgrade.

Opening 0.74 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) had gained 3.1 points, or 0.12 percent, to 2,606.52 as of 11:20 a.m.

Moody's slashed the U.S. sovereign credit rating to "Aa1" from "Aaa" late Friday (U.S. time), citing the government's huge debt load.

Wall Street on Monday, however, ended slightly higher, shrugging off the downgrade by Moody's.

The Dow Jones Industrial Average rose 0.32 percent, and the S&P 500 inched up 0.09 percent. The tech-heavy Nasdaq Composite climbed 0.02 percent.

In Seoul, major shares traded in mixed territory.

Chip giant Samsung Electronics rose 0.36 percent, and its rival SK hynix added 2.06 percent.

The state-run Korea Electric Power Corp. jumped 3.17 percent, and Hybe, a record label behind global superstars BTS, increased 2.41 percent.

However, leading battery maker LG Energy Solution tumbled 4.63 percent, and defense giant Hanwha Aerospace dropped 0.12 percent.

The local currency was trading at 1,393.2 won against the U.S. dollar at 11:20 a.m., up 4.6 won from the previous session.