Seoul:South Korean stocks continued to decline late Monday morning as investors remained cautious in anticipation of third-quarter earnings reports from major chipmakers and the U.S. Federal Reserve's upcoming monetary policy decision this week.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) opened 0.92 percent lower and extended its losses, trading down 71.49 points, or 1.29 percent, at 5,478.81 by 1120 a.m. Investors are closely monitoring the earnings reports from SK hynix on Wednesday and Samsung Electronics on Thursday for insights into the future demand for artificial intelligence (AI) chips and memory prices.
Additionally, attention is focused on the Federal Reserve's two-day policy meeting starting Tuesday (U.S. time), where the central bank is widely expected to maintain current interest rates amid ongoing inflationary pressures. This anticipation has affected market heavyweights, with Samsung Electronics dropping 1.62 percent and SK hynix experiencing a slight increase of 0.08 percent.
Other significant market movements included a 1.7 percent decrease in LG Energy Solution, a 2.88 percent fall in Hyundai Motor, and a sharp 10.67 percent decline in defense company LIG D and A. The latter's drop followed news that South Korea's arms procurement agency might revoke the firm's defense contractor designation in a small drone project due to bribery allegations.
Meanwhile, the Korean won was trading at 1,323.0 won against the U.S. dollar at 1120 a.m., marking an increase of 3.2 won from the previous session's close.