Seoul shares traded lower late Tuesday morning as lingering rate hike fears spurred sell-offs among institutions and foreign investors.
The benchmark Korea Composite Stock Price Index had shed 17.11 points, or 0.65 percent, to 2,601.89 as of 11:20 a.m.
Overnight, Wall Street closed higher, with the Dow Jones Industrial Average hitting its highest closing level in 2023, as the market anticipated more upbeat second-quarter earnings results following strong performances from some major banks.
U.S. Treasury Secretary Janet Yellen sent a positive signal to the market, saying she sees the U.S. on a "good path" to tamp down inflation without tipping the economy into a recession.
There are, however, lingering concerns that the U.S. central bank could raise policy rates at least two more times this year.
In Seoul, most big-cap shares traded lower.
Market behemoth Samsung Electronics shed 1.09 percent, while No. 2 chipmaker SK hynix added 0.77 percent. Top carmaker Hyundai Motor lost 0.74 percent, and its sister company Kia went down 1.39 percent.
Leading battery maker LG Energy Solution lost 0.74 percent, and Samsung Biologics shed 1.09 percent.
Major chemical company LG Chem remained flat, and steel giant POSCO Holdings gained 1.15 percent.
The local currency was trading at 1,260.6 won against the U.S. dollar at 11:20 a.m., down 6 won from the previous session's close.
Source: Yonhap News Agency