Key facts
- South Korean stocks extended losses Monday morning.
- Investors await earnings reports from SK hynix and Samsung Electronics.
- The U.S. Federal Reserve's monetary policy decision is also a key focus.
- LIG D&A tumbled on bribery allegations related to a drone project.
South Korean stocks traded lower late Monday morning, extending earlier losses as investors adopted a cautious stance ahead of key economic events. The benchmark Korea Composite Stock Price Index (KOSPI) fell 71.49 points, or 1.29 percent, to 5,478.81 by 11:20 a.m. Investors are anticipating third-quarter earnings reports from major chipmakers SK hynix on Wednesday and Samsung Electronics on Thursday, seeking insights into the outlook for AI chip demand and memory prices. The U.S. Federal Reserve's two-day policy meeting, starting Tuesday, is also under scrutiny, with expectations of interest rates remaining unchanged due to persistent inflation. Market heavyweights saw broad declines, with Samsung Electronics down 1.62 percent and LG Energy Solution off 1.7 percent. Hyundai Motor declined 2.88 percent, while LIG D&A plunged 10.67 percent following news of potential revocation of its defense contractor status over bribery allegations.