Seoul shares slip

South Korean shares fell for the first time in three sessions on Wednesday, as caution ahead of the Federal Reserve's policy meeting this week sparked a sell-off of exporters such as LG.Philips LCD following recent gains.
Foreign investors were net sellers for a 16th consecutive session, unloading a net 145.7 billion won ($152.2 million) worth of local shares, data at 0620 GMT showed, and bringing their net total during that period to some $2.92 billion.
Foreign funds have retreated from riskier emerging market assets to flock to safer alternatives since May, although some analysts predict they may soon return.
However, Hyundai Motor Co reversed earlier losses to end 0.13 percent higher at 78,000 won after Chung Mong-koo, the Hyundai Motor Group chairman, was granted bail on Wednesday, two months after he was arrested on suspicion of embezzling company funds. The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.71 percent to end at 1,238.71, after earlier falling as much as 1.96 percent.
Trading was thin with only 161.8 million shares worth 2.3 trillion won changing hands, according to data at 0620 GMT, compared with the 2005 daily average of 467.6 million shares.
Exporters led decliners, with flat-panel maker LG.Philips LCD Co Ltd falling 2.94 percent to 33,000 won, after shares had recovered 22 percent from a record low hit last week as investors became more optimistic that profitability would improve in the second half.
Chip maker Samsung Electronics Co Ltd fell 0.51 percent to 580,000 won.
The losses among exporters came despite data on Wednesday showing South Korea posted its biggest current account surplus in six months in May, thanks to brisk exports.
Lenders also fell, with top-ranked Kookmin Bank, ending down 2.14 percent to 73,000 won amid worries about the impact of slower exports on South Korea's economy and concerns that interest rates at home would also rise.
Decliners trumped gainers by 484 to 254 with 72 titles ending flat.
Retail investors bought a net 122.7 billion won, but institutional investors sold a net 26.5 billion won.
The September KOSPI 200 futures index fell 1.15 points to 160.40, while the underlying KOSPI 200 spot index lost 1.18 points to 160.18. South Korea's junior and tech heavy Kosdaq market fell 0.46 percent to finish at 563.61.