SEOUL: South Korean stocks traded 0.57 percent lower late Monday morning as investor sentiment remained volatile ahead of the U.S. Federal Reserve meeting scheduled for later this week.
The benchmark Korea Composite Stock Price Index (KOSPI) went south after opening higher, falling 11.15 points to 1,930.22 as of 11:20 a.m.
Many large caps lost ground, dragged down by selling by institutions and foreign investors, with automakers and brokerages weighing on the market.
Auto giant Hyundai Motor dropped 1.28 percent and top car parts maker Hyundai Mobis shed 1.17 percent. KDB Daewoo Securities lost over 3 percent.
Korea Zinc, the country’s largest zinc smelter, also plunged 3.14, while No. 1 Internet portal operator Naver declined 2.66 percent.
Airlines were among gainers, boosted by a fall in international crude oil prices. Korean Air Lines and Asiana Airlines gained 1.58 percent and 1.79 percent, respectively. Insurers also traded bullish, with Samsung Fire & Marine Insurance jumping over 5 percent.
The U.S. Federal Reserve is scheduled to meet on Wednesday and Thursday (local time) to decide whether to raise its near-zero interest rate, a decision that investors around the world are closely watching to gauge future market directions.
The local currency was trading at 1,180.55 won against the U.S. dollar as of 11:20 a.m., up 3.95 won from the previous close.
