(2nd LEAD) Seoul shares dip over 1 pct ahead of earnings reports, Fed decision

SEOUL, Oct. 26 (Yonhap) -- Seoul shares ended lower Monday, tracking losses on Wall Street, as investors remained cautious ahead of third-quarter earnings reports from major chipmakers and the U.S. Federal Reserve's rate decision later this week.

The Korean won rose against the U.S. dollar.

After opening 0.92 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses to close down 80.83 points, or 1.46 percent, at 5,469.47.

Trade volume was light at 190.46 million shares worth 12.01 trillion won (US$9.08 billion), with decliners far outnumbering advancers 790 to 101.

On Friday (U.S. time), the Dow Jones Industrial Average fell 1.23 percent, while the tech-heavy Nasdaq Composite declined 0.21 percent.

Investors are awaiting earnings reports from SK hynix on Wednesday and Samsung Electronics on Thursday for clues about the outlook for artificial intelligence (AI) chip demand and memory prices.

They are also closely watching the Fed's two-day policy meeting, which begins Tuesday, with the central bank widely expected to leave interest rates unchanged amid persistent inflationary pressure.

Foreigners sold a net 695.5 billion won worth of stocks, while institutions and individuals bought a net 611 billion won and 47 billion won, respectively.

In Seoul, most large-cap stocks declined.

Market bellwether Samsung Electronics fell 1.16 percent to 213,000 won, while its chipmaking rival SK hynix declined 0.16 percent to 1.28 million won.

Top carmaker Hyundai Motor dropped 2.54 percent to 288,000 won and defense giant Hanwha Aerospace plunged 4.04 percent to 760,000 won.

Among gainers, leading budget carrier Jeju Air rose 0.96 percent to 5,250 won and LG Display climbed 2.38 percent to 7,320 won.

The Korean won was quoted at 1,323.1 won against the U.S. dollar as of 3:30 p.m., compared with 1,324.6 won at the previous stock trading session's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 1.4 basis points to 3.789, and the return on the benchmark five-year government bonds declined 1.6 basis points to 3.932.