Seoul: Seoul stocks extended losses late Wednesday morning, on Federal Reserve Chair Jerome Powell's assessment that the U.S. stock market might have been overpriced. The benchmark Korea Composite Stock Price Index (KOSPI) had declined 39.95 points, or 1.15 percent, to 3,446.24 as of 11:20 a.m.

According to Yonhap News Agency, overnight, Wall Street's major equity indexes lost ground after the Fed Chair said the recent stock prices are "fairly highly valued." In response, large-cap shares in Seoul declined, with significant losses observed in the tech and finance sectors.

Market top-cap Samsung Electronics fell 0.94 percent, while its rival SK hynix retreated 2.77 percent. Financial groups were not spared, as KB Financial Group inched down 0.17 percent, and Shinhan Financial slid 0.72 percent.

In contrast, defense shares experienced gains following U.S. President Donald Trump's remarks at the U.N. General Assembly, suggesting that NATO countries should shoot down Russian aircraft if they enter their airspace. Defense giant Hanwha Aerospace advanced 4.88 percent, and battle tank maker Hyundai Rotem added 2.91 percent.

The local currency had been quoted at 1,394.6 won against the greenback as of 11:20 a.m., down 2 won from the previous session's close.