Seoul: Stocks, won take breather before Fed decision

[SEOUL] South Korean shares touched a record high on Wednesday before reversing gains as investors turned more cautious ahead of the outcome of the US Federal Reserve policy meeting.

The Korea Composite Stock Price Index (Kospi) was down 0.2 per cent at 2,369.67 as of 0218 GMT, after touching a record high of 2,387.29 as soon as the market opened.

"The index gradually gave up its gains as the cautious mood strengthened in the stock markets," said Kim Ye Eun, a stock analyst with Cape Investment & Securities.

Market players are waiting for any hints from the Fed statement on when the central bank will reduce its massive balance sheet, Mr Kim added.

Offshore investors were poised to be small net sellers of Kospi shares near mid-session.

Advancers and decliners were almost even by 395 to 391.

Market heavyweights showed mixed movements with Hyundai Motor up 2.7 per cent and Korea Electric Power Corp down 1.8 per cent.

The South Korean won rose 0.2 per cent to 1,125.4 against the US dollar, compared with Tuesday's close of 1,128.3.

June futures on three-year treasury bonds shed 0.06 point to 109.52.

REUTERS