Seoul: Stocks waver despite steel rally; won extends losses

[SEOUL] South Korean shares ended slightly weaker on Tuesday and the won skidded as investors turned cautious ahead of a US Federal Reserve policy decision later in the week.

The Korea Composite Stock Price Index (Kospi) closed down 0.1 per cent at 2,416.05 points, despite strong gains in shares of steel and carmakers.

Foreign investors stepped up their share selling, trimming portfolios by a net 143.7 billion won (S$171.3 million), as many took profits from the Kospi's gain in the previous session. The index rose 1.4 per cent on Monday, ending at a six-week high.

The won was pressured by the foreign selloff in local equities as well as caution ahead of the two-day Fed meeting which begins later on Tuesday.

The won was quoted at 1,131.3 to the US dollar at the conclusion of onshore trade, down 0.4 per cent from Monday's close of 1,126.6.

REUTERS