Seoul: South Korean shares narrowed losses late Monday morning but continued to trade lower as investors took a wait-and-see approach on a possible rate cut by the U.S. Federal Reserve this week. The benchmark Korea Composite Stock Price Index (KOSPI) fell 1.54 points, or 0.04 percent, to 4,098.51, as of 11:20 a.m.

According to Yonhap News Agency, the two-day Federal Open Market Committee meeting is set to kick off on Tuesday (U.S. time), with market watchers widely anticipating a 0.25 percentage point cut. Investors, meanwhile, also sat on the sidelines ahead of scheduled earnings releases this week for U.S. tech firms, including Oracle and Broadcom.

In Seoul, top tech giant Samsung Electronics moved up 0.92 percent, while SK hynix shed 0.55 percent. LG Energy Solution added 4.58 percent following the announcement of its new supply deal with Mercedes-Benz. Financial shares traded lower, with KB Financial falling 3.02 percent and Shinhan Financial losing 3.37 percent.

The local currency was trading at 1,469.4 won against the greenback at 11:20 a.m., down 0.6 from the previous session.