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Seoul shares edge down as large caps ease

* KOSPI ends down 0.14 pct

* Economic uncertainty, earnings worries dampen sentiment

* Caution ahead of c.bank meeting, options expiries

By Hyunjoo Jin

SEOUL, Oct 9 (Reuters) - South Korean stocks pared early gains to close slightly lower on Tuesday, with the benchmark index weighed down by heavyweights such as Samsung Electronics

and Hyundai Motor .

"The market remains lacklustre, as economic uncertainty persists ahead of the Bank of Korea's interest rate decision and options expiries this week," Laurence Kim, an analyst at Woori Investment & Securities said.

"There have been downward revisions of corporate earnings, which also weigh on the market," he said.

The Korea Composite Stock Price Index (KOSPI)

finished down 0.14 percent at 1,979.04 points.

Foreign investors resumed selling, although institutional buying lent support to the market.

Weighing on sentiment, euro-zone finance ministers said Spain did not need a bailout because it was taking steps to put its finances in order. Expectations that Madrid would ask for financial aid have helped support equities and other risky assets over the past several weeks.

South Korea's central bank promised last week to direct policy at shoring up the sputtering economy, as a survey showed the manufacturing sector shrank by the most in nearly four years, adding to expectations it will cut interest rates on Thursday.

Shares in Samsung Electronics, South Korea's most valuable stock, eased 0.07 percent, second-ranked Hyundai Motor

extended losses for a fifth consecutive session, ending down 0.42 percent. Third-placed POSCO ended down 0.14 percent. Move on day -0.14 percent 12-month high 2,057.28 14 March 2012 12-month low 1,750.60 19 Dec 2011 Change on yr +8.397 percent All-time high 2,231.47 27 April 2011 All-time low 93.10 6 January 1981

(Reporting by Hyunjoo Jin; Editing by Richard Pullin)

((hyunjoo.jin@thomsonreuters.com)(82-2-3704-5685)(Reuters

Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))

Keywords: MARKETS KOREA STOCKS/