Seoul shares sharply down late Wed. morning as rate-cut hopes fade

Seoul shares extended losses late Wednesday morning as robust U.S. manufacturing activity spurred speculation that the Federal Reserve will keep interest rates higher for the time being. The benchmark Korea Composite Stock Price Index (KOSPI) rose 41.39 points, or 1.50 percent, to 2,711.64 as of 11:20 a.m. This week, China and the United States released strong manufacturing figures. And the Fed appears to be in no rush to begin lowering rates. Institutions and foreigners sold a combined 544 billion won (US$402 million) worth of stocks, offsetting individuals' stock purchases valued at 535 billion won. In Seoul, tech and auto stocks led declines. Market bellwether Samsung Electronics Co. fell 1.3 percent, No. 2 chipmaker SK hynix Inc. declined 3.9 percent, top carmaker Hyundai Motor Co. shed 1.1 percent and leading battery maker LG Energy Solution Ltd. was down 3.8 percent. Among gainers, leading shipping firm HMM rose 2.6 percent, cosmetics firm Amorepacific Corp. climbed 0.9 percent, logistics firm Hy undai Glovis Co. gained 0.9 percent and No. 2 full-service carrier Asiana Airlines Inc. was up 0.6 percent. The local currency was trading at 1,350.15 won against the U.S. dollar, up 1.95 won from the previous session's close. Source: Yonhap News Agency