(URGENT) Seoul shares dip over 1 pct ahead of earnings reports, Fed decision

SEOUL, October 26 - The South Korean stock market experienced a decline on Monday, mirroring the downward trend on Wall Street, as investors approached earnings announcements for key chip manufacturers and the upcoming Federal Reserve interest rate decision. The KOSPI index, a key benchmark, fell from an opening loss of 0.92 percent to close down 80.83 points or 1.46 percent at 5,469.47.

In the preceding U.S. trading session, the Dow Jones Industrial Average had dropped 1.23 percent, while the Nasdaq Composite experienced a slight decline of 0.21 percent. Investors are eagerly anticipating earnings reports from SK hynix, scheduled for release on Wednesday, and Samsung Electronics on Thursday, to gauge the potential impact on AI chip demand and memory pricing.

Additionally, the Federal Reserve's two-day policy meeting, commencing on Tuesday, is generating significant interest, with expectations that the central bank will maintain interest rates in light of ongoing inflation concerns. Foreign investors sold a net of 695.5 billion won (approximately US$526 million) worth of stocks, while domestic institutions and individual investors collectively bought a combined net of 611 billion won and 47 billion won, respectively.