Seoul: South Korean stocks traded lower late Tuesday morning ahead of the U.S. Federal Reserve's upcoming meeting to set its key interest rate. The benchmark Korea Composite Stock Price Index (KOSPI) fell 21.21 points, or 0.51 percent, to 4,133.64 as of 11:20 a.m.

According to Yonhap News Agency, U.S. stocks finished lower overnight. Although a rate cut is widely anticipated at the Fed's rate-setting meeting on Tuesday (U.S. time), investors were seeking more clues for future monetary policy by the central bank. The Dow Jones Industrial Average fell 0.45 percent, and the Nasdaq composite lost 0.14 percent.

In Seoul, losses in tech and energy shares weighed on the index. Tech giant Samsung Electronics fell 1.28 percent, and No. 1 internet portal operator Naver went down 0.3 percent. The state-run Korea Electric Power Corp. sank 2.32 percent, and Korea Gas Corp. slipped 0.83 percent. Top carmaker Hyundai Motor tumbled 3.49 percent, and its auto parts affiliate Hyundai Mobis dipped 1.93 percent. Bank shares were also weak as KB Financial Group and Shinhan Financial Group declined 2.03 percent and 0.51 percent, respectively.

The local currency was trading at 1,470.7 won against the greenback at 11:20 a.m., down 3 won from the previous session.