Seoul shares extend losses late Tue. morning ahead of Fed minutes’ release

SEOUL-- Seoul shares extended losses late Tuesday morning despite overnight rallies on Wall Street as investors await a cue from the Fed minutes this week about the U.S. central bank's future tightening move.

The Korea Composite Stock Price Index (KOSPI) fell 22.26 points, or 0.84 percent, to 2,625.12 as of 11:20 a.m.

Institutions and foreigners sold a combined 291 billion won (US$230 million) worth of stocks. But individuals bought a net 284 billion won stocks, keeping the main index from falling further.

Overnight, the Dow Jones Industrial Average rose 2 percent to 31,880.24, and the tech-focused Nasdaq index gained 1.6 percent to 11,535.27, helped by U.S. President Joe Biden's comments that China tariffs imposed by the Trump administration are being reviewed.

Investors remain cautious about the Fed's additional rate hikes, inflation and the impact of China's COVID-19 lockdown on the global economy.

They also await earnings results of U.S. retail companies, such as Best Buy, a specialty retailer of consumer electronics, Costco Wholesale Corp. and high-end department store chain Macy's, Inc.

Most large-cap stocks declined across the board.

Market bellwether Samsung Electronics Co. fell 1.6 percent, No. 2 chipmaker SK hynix Inc. declined 2.2 percent, top carmaker Hyundai Motor Co. dropped 1.3 percent, and leading refiner SK Innovation Co. shed 1.4 percent.

Among gainers, state utility Korea Electric Power Corp. rose 4 percent, state-run Korea Gas Corp. climbed 0.7 percent, and national flag carrier Korean Air Lines Co. gained 0.4 percent.

The local currency was trading at 1,265.55 won against the greenback as of 11:20 a.m., down 1.45 won from Monday's close.

Source: Yonhap News Agency

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