Seoul Stocks Fall Ahead of Chip Earnings and Fed Decision
Seoul shares traded lower Monday morning as investors awaited third-quarter earnings from SK hynix and Samsung Electronics and the Federal Reserve's policy decision later this week.
After opening 0.92 percent lower, the benchmark Korea Composite Stock Price Index extended its earlier losses to trade down 71.49 points, or 1.29 percent, at 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 chip demand and memory prices. They are also watching 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. Samsung Electronics shed 1.62 percent, while SK hynix inched up 0.08 percent. Battery maker LG Energy Solution decreased 1.7 percent, and top automaker Hyundai Motor went down 2.88 percent. Defense company LIG D&A tumbled 10.67 percent after 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.