Seoul: South Korean stocks traded lower late Tuesday morning as investor sentiment was dampened due to renewed military tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) was trading down 10.98 points, or 0.16 percent, to 6,809.04 as of 11:20 a.m.

According to Yonhap News Agency, overnight, major U.S. stocks closed lower weighed down by a resumption of military clashes between the United States and Iran. Investors are anticipating a rate hike at the Federal Reserve's rate-setting meeting later this month following Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium. The Dow Jones Industrial Average fell 0.7 percent, the S and P 500 lost 0.33 percent, and the Nasdaq composite declined by 0.12 percent.

In Seoul, major shares traded in mixed territory. Top-cap Samsung Electronics fell 0.1 percent, while SK hynix rose 1.19 percent. Auto giant Hyundai Motor saw a decline of 1.36 percent, and major defense firm LIG D and A dropped 2.31 percent. However, leading battery maker LG Energy Solution added 0.26 percent, and steel giant POSCO Holdings rose 2.07 percent.

The Korean won was quoted at 1,369.85 won against the U.S. dollar as of 11:20 a.m., down 0.55 won from the previous stock trading session.