Seoul: South Korean stocks traded slightly higher late Wednesday morning, backed by overnight U.S. stocks gains boosted by eased Middle Eastern tensions and hopes of an early interest rate cut. The benchmark Korea Composite Stock Price Index (KOSPI) gained 10.88 points, or 0.35 percent, to 3,114.52 as of 11:20 a.m. The benchmark index opened lower but later recouped its losses.
According to Yonhap News Agency, overnight, Wall Street gained ground as investors focused on easing tensions in the Middle East following the ceasefire between Israel and Iran, and the possibility of an early interest rate cut raised by U.S. Federal Reserve Chair Jerome Powell during a testimony at the U.S Congress.
In Seoul, gains were led by chip shares. Market heavyweight Samsung Electronics and chip rival SK hynix rose 0.25 percent and 3.23 percent, respectively. Automotive and steel shares also enjoyed brisk trading. Top automaker Hyundai Motor soared 4.37 percent, and leading steelmaker POSCO Holdings jumped 1.71 percent. Kakao Pay also surged 7.28 percent on hopes that the online lender could benefit from the government's push to adopt won-pegged stablecoins.
In contrast, financial and internet portal shares retreated. Kookmin Financial dropped 1.78 percent, and top portal operator Naver slumped 3.61 percent. Leading battery manufacturer LG Energy Solution lost 0.67 percent. The local currency was trading at 1,361.05 won against the greenback at 11:20 a.m., down 0.85 won from the previous session.