Seoul shares closed lower Tuesday as investors turned cautious over the U.S. Federal Reserve’s policy outlook, despite expectations of a rate cut at its upcoming meeting.

The benchmark Korea Composite Stock Price Index lost eleven‑point‑three points, or zero‑point‑27 percent, to close at four‑thousand‑143‑point‑55.

Trading volume was moderate at 397‑point‑three million shares worth 13‑point‑two trillion won, about 9 billion U.S. dollars, with decliners outnumbering advancers 473 to 401.

Markets expect a rate cut at the Fed’s two‑day meeting beginning Tuesday, but caution persists amid concerns the pace of easing may slow, fueling uncertainty.

In Seoul, semiconductor and auto stocks led declines.

Samsung Electronics fell one percent to 108‑thousand‑400 won, while SK hynix dropped one‑point‑91 percent to 566‑thousand won.

Hyundai Motor slid two‑point‑69 percent to 307‑thousand won, and Kia lost one‑point‑43 percent to 123‑thousand‑800 won.

Other major losers included LG Energy Solution and Hyundai Engineering & Construction, shedding one‑point‑77 and one‑point‑62 percent, respectively.

Kakao dropped one‑point‑94 percent, and Hana Financial Group retreated one‑point‑06 percent.

However, defense and biotech shares gained, with Hanwha Aerospace rising two‑point‑45 percent and Samsung Biologics advancing one‑point‑nine percent.

The tech‑heavy KOSDAQ rose three‑point‑56 points, or zero‑point‑38 percent, to close at 931‑point‑35.

The South Korean won weakened against the U.S. dollar by five‑point‑four won, trading at one‑thousand‑472‑point‑three won as of 3:30 p.m.