Seoul shares slump in late-morning trade

SEOUL, May 27 (Yonhap) -- South Korean stocks traded sharply lower late Wednesday morning as Wall Street losses driven by a looming interest rate hike dampened investor sentiment, analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 38.32 points, or 1.79 percent, to 2,105.18 as of 11:20 a.m.

Shares traded bearish across the board. Market bellwether Samsung Electronics shed 2.35 percent, and top automaker Hyundai Motor fell 1.25 percent.

In contrast, Samsung Group affiliates rallied for a second consecutive day after Cheil Industries and Samsung C&T on Tuesday announced their plans to merge in September as part of a groupwide restructuring.

Cheil Industries, Samsung's de facto holding company, surged 6.12 percent, and Samsung C&T, a trading and construction arm, spiked 5.82 percent.

U.S. stocks declined on Tuesday after better-than-expected economic data bolstered speculations over a rate hike in the world's largest economy, coupled with financial woes in Spain following Greece.

The local currency was trading at 1,107.45 won against the U.S. dollar, down 6.45 won from Tuesday's close.

ejkim@yna.co.kr
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