Seoul stocks down on U.S. rate hike woes

South Korean stocks fell slightly on Wednesday, sliding for a second consecutive session, as investors sought to cash in on recent gains amid growing expectations that the U.S. Federal Reserve may raise its interest rate. The Korean won dropped against the U.S. dollar.

The benchmark Korea Composite Stock Price Index fell 4.01 points, or 0.20 percent, to close at 2,043.75. Trade volume was light at 388 million shares worth 4.31 trillion won ($3.89 billion), with losers outnumbering gainers outnumbering losers 540 to 281.

On Tuesday, Fed officials fueled speculation of an interest rate hike this year following a set of data showing that the world's largest economy is on a recovery track.

Top market cap Samsung Electronics fell 0.13 percent to end at 1,566,000 won, and AmorePacific, the No. 1 cosmetics maker, rose 0.51 percent to 391,000 won.

SK hynix, a major chipmaker, fell 0.45 percent to 33,550 won.

Naver, the operator of the country's top internet portal, remained flat at 790,000 won.

Automakers traded in positive terrain, with industry leader Hyundai Motor rising 1.5 percent to 135,000 won.

The local currency closed at 1,108.30 won against the U.S. dollar, sharply down 16.1 won from the previous session's close. (Yonhap)