South Korean stocks started lower Tuesday, as investors awaited the Chinese central bank's rate decision and its next monetary policy steps.

The benchmark Korea Composite Stock Price Index slid 10.18 points, or 0.39 percent, to 2,599.32 in the first 15 minutes of trading.

The People's Bank of China is expected to cut its benchmark loan prime rate later in the day amid sluggish growth.

Investors are hoping to see Beijing roll out fresh stimulus to boost demand.

Market observers will also pay close attention to what US Federal Reserve Chair Jerome Powell will say during a congressional testimony slated for Wednesday and Thursday.

The Fed has disappointed the markets with some of its officials backing the need for further interest rate hikes by the year-end, dashing hopes that it will end its aggressive rate increases aimed at curbing the runaway inflation.

Wall Street closed Monday for the Juneteenth holiday, celebrating the emancipation of enslaved African Americans.

In Seoul, mega-cap tech and energy stocks led the decline. Market behemoth Samsung Electronics slid nearly 1 percent, and top battery maker LG Energy Solution lost 0.9 percent.

Leading energy company SK Innovation dipped more than 2 percent.

IT stocks gained ground. Internet portal provider Naver gained 0.6 percent, and its platform rival Kakao inched up 0.2 percent.

The local currency was trading at 1,282.7 won against the US dollar at 9:15 a.m., down 0.7 won from Monday's close. (Yonhap)