Seoul: South Korean stocks traded higher late Tuesday morning, as foreign investors and institutions resumed their purchases of local shares amid eased artificial intelligence (AI) bubble woes. The benchmark Korea Composite Stock Price Index (KOSPI) had added 21.58 points, or 0.41 percent, to 5,337.17 as of 11:20 a.m.
According to Yonhap News Agency, overnight gains in major U.S. indices contributed to the positive sentiment. The Nasdaq Composite gained 0.9 percent, and the S and P 500 added 0.47 percent as investors showed interest in tech shares, following reduced concerns over AI valuations. The Dow Jones Industrial Average also saw a slight increase of 0.04 percent.
In Seoul, semiconductor heavyweights Samsung Electronics and SK hynix saw modest gains, rising 0.18 percent and 0.28 percent, respectively. The automotive sector also performed well, with Hyundai Motor climbing 1.57 percent and its affiliate Kia rising 1.63 percent. Financial shares were strong performers, with KB Financial surging 3.1 percent and Shinhan Financial jumping 4.28 percent, while Samsung Life Insurance advanced 2.28 percent. Internet portal operator Naver escalated 2.8 percent.
Conversely, the market saw declines in some sectors. Leading battery maker LG Energy Solution lost 1.52 percent, and defense company Hanwha Aerospace saw a significant drop of 5.95 percent. Power plant builder Doosan Enerbility and Korea Electric Power also experienced declines, falling 1.57 percent and 2.56 percent, respectively. Shipbuilders such as HD Hyundai Heavy and Hanwha Ocean lost ground, with declines of 2.59 percent and 1.73 percent, respectively.
The Korean won was trading at 1,457.3 won against the U.S. dollar at 11:20 a.m., showing an increase of 3.0 won from the previous session.