Seoul: Seoul shares opened higher Tuesday, led by gains in semiconductor stocks, amid escalating tensions in the Middle East that pushed up oil prices. After opening 0.72 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) extended gains, trading 54.51 points, or 0.78 percent, up at 7,049.90 as of 9:15 a.m.
According to Yonhap News Agency, the index soared by more than 4 percent in the previous session, driven by a rally in tech stocks amid revived hopes for artificial intelligence (AI)-related earnings momentum. The U.S. stock market was closed on Sept. 7 for the Labor Day holiday, which has kept investors focused on other global markets.
Higher energy prices are contributing to inflation concerns, with investors closely watching whether the Federal Reserve will raise rates or maintain them. The upcoming inflation report on Friday is highly anticipated, as it may provide insights into the central bank's rate path.
Additionally, Tehran announced that a deal with Oman to manage shipping through the Strait of Hormuz was near completion, while cautioning that ships faced the risk of attack off the Omani coast.
In Seoul, tech shares were at the forefront of the gains. Key market player Samsung Electronics rose 1.11 percent, while its competitor SK hynix climbed 2.97 percent. State-run utility Korea Electric Power Co. experienced a 3.82 percent jump, and leading refiner SK Innovation advanced 1.6 percent.
On the downside, major carmaker Hyundai Motor fell 0.76 percent, and leading battery maker LG Energy Solution declined 1.24 percent. The Korean won was trading at 1,338.55 won against the U.S. dollar as of 9:15 a.m., marking an increase of 8.15 won from the close of the previous stock trading session.