Seoul stocks extend losses Mon. morning ahead of earnings reports, Fed decision

SEOUL, Oct. 26 - South Korean shares fell late Monday as investors remained wary before third-quarter earnings from leading chipmakers and the U.S. Federal Reserve's monetary policy announcement later in the week. The KOSPI index opened 0.92 percent lower and slipped further to close 1.29 percent down at 5,478.81 by 11:20 a.m. Traders are eagerly anticipating earnings from SK hynix on Wednesday and Samsung Electronics on Thursday, which could shed light on demand for artificial intelligence (AI) chips and memory prices.

Additionally, the Federal Reserve's two-day policy meeting beginning Tuesday is under close scrutiny, with the central bank widely anticipated to maintain interest rates despite ongoing inflation. Samsung Electronics plunged 1.62 percent, while chipmaker SK hynix rose slightly 0.08 percent. Battery producer LG Energy Solution dropped 1.7 percent, and major automaker Hyundai Motor Co. declined 2.88 percent.

Defense company LIG D&A saw the steepest decline of 10.67 percent following reports that South Korea's arms procurement agency is contemplating removing LIG D&A's defense contractor status in a small drone project due to bribery concerns. The Korean won was trading at 1,323.0 per U.S. dollar at 11:20 a.m., up 3.2 won from the previous day's close.