Seoul: South Korean stocks traded slightly lower late Tuesday morning on losses from tech and auto shares after the central bank lowered the country's key borrowing rate. The benchmark Korea Composite Stock Price Index (KOSPI) had lost 6.57 points, or 0.25 percent, to 2,638.7 as of 11:20 a.m.
According to Yonhap News Agency, earlier in the day, the Bank of Korea cut its key rate by 25 basis points to 2.75 percent, citing weak domestic demand and uncertainties at home and abroad. It also lowered its outlook for the country's economic growth this year to 1.5 percent from 1.9 percent. Tech, auto, and game shares dragged down the index.
Chip giant SK hynix fell 2.2 percent and No. 2 carmaker Kia decreased 0.95 percent. Top mobile carrier SK Telecom retreated 1.19 percent and major game publisher NCSOFT skidded 0.79 percent. However, Samsung Electronics rose 0.35 percent and its biotech affiliate Samsung Biologics gained 3.48 percent.
The local currency was trading at 1,429.4 won against the U.S. dollar at 11:20 a.m., down 2 won from the previous session.