Seoul shares down over 1 pct on dashed hopes for U.S. rate cuts

South Korean stocks traded more than 1 percent lower late Friday morning as investors were spooked by rising bets the U.S. Federal Reserve will keep its rate high for longer on better-than-expected economic data. The benchmark Korea Composite Stock Price Index had fallen 29.22 points, or 1.07 percent, to 2,692.59 as of 11:20 a.m. A series of U.S. economic reports on Thursday (local time) sapped investors' appetite, showing inflationary pressure was still high in May, a negative signal for the Fed to consider cutting its rates. In Seoul, tech behemoth Samsung Electronics plunged 2.3 percent on a foreign media report that its latest high-bandwidth memory (HBM) chips had failed to pass tests by the U.S. artificial intelligence chip giant Nvidia. Leading battery maker LG Energy Solution dropped 1.1 percent, and its smaller rivals Samsung SDI and POSCO Future M lost 0.86 percent and 1.91 percent, respectively. Top automaker Hyundai also shed 1.29 percent, and its auto parts-making affiliate, Hyundai Mobis, s lid 1.98 percent. IT shares were also weak, with internet portal operator Naver down 1.26 percent and Kakao, the operator of the country's top mobile messenger, down 2.09 percent. SK hynix remained unchanged thanks to the U.S. chip giant Nvidia's continued rally, and chemical producer LG Chem jumped 1.52 percent. The local currency was trading at 1,370.00 won against the U.S. dollar, down 7.6 won from the previous session's close. Source: Yonhap News Agency