Seoul shares turned lower late Friday morning on foreign selling, with investors remaining hopeful over the Federal Reserve’s rate cut next week.

The benchmark Korea Composite Stock Price Index fell 1.26 percent, or 31.63 points, to 2,545.00 in the first 15 minutes of trading.

In August, the U.S. core consumer price index and producer price index rose slightly from a month earlier, dashing hopes for a big cut by the Fed next week.

But market participants expect the U.S. central bank to cut rates by at least 25 basis points when it meets on Sept. 17 and 18.

Foreigners sold a net 383 billion won (US$287 million) worth of stocks, offsetting institutions and individuals’ stock purchases valued at 311 billion won.

Tech stocks were lead decliners.

Market bellwether Samsung Electronics fell 2.4 percent, No. 2 chipmaker SK hynix Inc. retreated 2.8 percent, leading battery maker LG Energy Solution Ltd. shed 2.8 percent, and leading cosmetics firm Amorepacific Corp. plunged 5.3 percent.

Among gainers, top carma
ker Hyundai Motor Co. rose 1.9 percent, Hyundai Motor’s smaller affiliate Kia Corp. climbed 1.6 percent, No. 1 auto parts maker Hyundai Mobis Co. jumped 3.8 percent, and state-run Korea Gas Corp. was up 1.8 percent.

Hyundai Motor Group affiliates advanced on news that Hyundai Motor will expand collaboration with General Motors Co. in vehicle development and clean energy technologies.

The local currency was trading at 1,332.15 won against the U.S. dollar, up 6.55 won from the previous session.

Source: Yonhap News Agency