SEOUL: Seoul shares fell slightly on Wednesday after the US Federal Reserve refrained from making any policy changes at its last meeting of 2011, which gave investors little impetus to change tack.
"The market is still under the shadow of persistent euro-zone debt jitters, but the index has recouped some of its early losses from bargain bin purchases," said Park Suk-hyun, a market analyst at KTB Investment & Securities.
"Expectations ahead of the release of US economic data post-shopping season and possible mass credit cuts in the eurozone by the S&P are counter-balancing one another, but signals aren't clear enough at this point to have a real impact on the markets."
The Federal Reserve on Tuesday warned of the risk to the US economy posed by turbulence in Europe and left the door open for further monetary easing next year, but it provided no hints for any new stimulus measures to counter the chilling effect of the on-going debt crisis in Europe.
The Korea Composite Stock Price Index (KOSPI) was down 0.19 percent at 0220 GMT.
Tech issues led the morning losses, with IT giant Samsung Electronics down 1.62 percent while LG Display shed 2.07 percent of its value.
Construction issues managed to minimize its losses after reports that a South Korean court had suspended the bidding limitations on government contracts, which had been imposed last month on construction firms that had allegedly falsified documents in the bidding process.
Daelim Industry rose 0.21 percent while Kumho Industrial shares climbed 2.46 percent.
Defensive shares rallied, with SK Telecom, South Korea's largest mobile carrier, gaining 1.68 percent, while KT Corp, South Korea's second largest carrier, adding 0.68 percent.
Foodmaker Nongshim soared 3.35 percent while confectionary maker Orion Corp rose 3 percent.
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