SEOUL, June 17 (AJP) - South Korea's main index took a light breather after a nonstop four-day rally of more than 12 percent as foreign investors turned sellers ahead of the U.S. Federal Reserve's policy decision.
As of 10:30 a.m., the benchmark KOSPI stood at 8,703.90, down 0.3 percent from the previous session. The index moved between an intraday high of 8,727.58 and a low of 8,605.66.
Foreign investors turned sellers after three consecutive sessions of buying, offloading a net 974.3 billion won, while institutions also sold a net 225.4 billion won.
Retail investors took this as a cue to buy, purchasing a net 1.3 trillion won ($786.4 million) worth of KOSPI shares.
Investors were awaiting the outcome of the Federal Reserve's Federal Open Market Committee meeting later in the day. Markets widely expect the Fed to keep its benchmark interest rate unchanged, but investors are watching for signals from Fed Chair Kevin Warsh's first post-meeting press conference.
Despite the broader decline, select sectors posted sharp gains. Electric utilities led advances, with the sector rising 3.1 percent. Korea Electric Power Corp. gained 3.9 percent to 41,300 won, while KEPCO Engineering & Construction rose 0.9 percent to 135,800 won.
Shipbuilding shares also advanced, with the sector up 3.1 percent. Hanwha Engine jumped 10.5 percent to 65,500 won, while HD Hyundai Marine Engine gained 6.7 percent to 76,900 won.
Cable and steel pipe-related shares were among the strongest thematic plays. The cable sector rose 7.9 percent, led by Gaon Cable, which surged 26.9 percent to 333,000 won, and KBI Metal, which jumped 21.1 percent to 5,730 won.
Steel pipe makers also rallied 7.9 percent, with HiSteel climbing by the daily limit of 30 percent to 4,225 won and Yulchon advancing 29.9 percent to 1,225 won.
The secondary KOSDAQ rose 0.5 percent to 1,023.90 after moving between an intraday high of 1,026.28 and a low of 1,008.57. Retail investors bought a net 123.2 billion won, while foreign investors and institutions sold 124.4 billion won and 3.1 billion won, respectively.
The won was little changed at 1,513.20 against the U.S. dollar.
Oil prices edged higher on Wednesday but remained near three-month lows after four straight sessions of declines, as expectations for a U.S.-Iran peace agreement continued to weigh on supply concerns. West Texas Intermediate rose 0.2 percent to $76.20 a barrel, while Brent crude gained 0.2 percent to $79.10.
Brent traded below $80 a barrel as investors anticipated Washington and Tehran would sign a preliminary agreement in Switzerland on Friday. The deal is expected to grant Tehran broad economic incentives, including the immediate resumption of oil exports.
If implemented, the agreement could also allow more tankers to resume passage through the Strait of Hormuz, although shipping companies remain cautious about the route's longer-term stability.
The additional supply outlook, combined with higher OPEC+ export quotas and increased production from the United Arab Emirates following its departure from the cartel during the conflict, is expected to add to global inventories. Industry data showed U.S. crude inventories fell by 8.3 million barrels last week.
Japan's Nikkei 225 rose 0.4 percent to 69,696.10 after testing the 70,000 level in the previous session. China's Shanghai Composite fell 0.3 percent to 4,079.03, while Hong Kong's Hang Seng Index gained 0.3 percent to 24,552.39.
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