Seoul shares turn higher after Australia rate cut

SEOUL, Oct 7 (Reuters) - South Korean stocks turned higher on Tuesday afternoon from earlier steep losses after Australia's central bank slashed the country's interest rates by a larger-than-expected 100 basis points.

The main Seoul stock market's benchmark KOSPI was up 0.2 percent at 1,361.50 points at 0355 GMT, recovering from an earlier drop of as much as 2.7 percent. (Reporting by Yoo Choonsik; Editing by Jonathan Hopfner)