Seoul shares fall more than 2 percent on Fed taper concerns

SEOUL Sun Jan 26, 2014 7:14pm EST

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SEOUL Jan 27 (Reuters) - Seoul shares fell more than 2 percent on Monday morning on heightened concern over capital outflows from emerging markets, led by tighter credit conditions in China and expectations the Federal Reserve will continue to taper its stimulus

The Korea Composite Stock Price Index (KOSPI) opened down 2.1 percent at 1,900.51 points at 0004 GMT.

In the two-day policy meeting scheduled from Tuesday to Wednesday, the Fed is expected to cut an additional $10 billion in its bond-purchasing stimulus programme. This has led to a shift of funds from emerging markets to the United States as investors seek higher returns from rising Treasury yields.

(Reporting by Jungmin Jang; Editing by Shri Navaratnam)

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