Seoul: South Korean stocks traded higher late Tuesday morning amid hopes for progress in talks on the United States' tariff scheme and the potential revision of a shareholders-friendly law. The benchmark Korea Composite Stock Price Index (KOSPI) added 50.40 points, or 1.64 percent, to 3,122.10 as of 11:20 a.m.
According to Yonhap News Agency, the index opened higher, tracking overnight gains on Wall Street, and extended gains further on solid buying by foreign and institutional investors. During intraday trading, the index hit a yearly high, rising above the 3,130 level.
Investor sentiment was buoyed by signs of progress in trade talks between the U.S. and Canada, as well as other trading partners, and by the possibility that the Federal Reserve may resume interest rate cuts. These factors pushed the S and P 500 and the tech-heavy Nasdaq to all-time highs on Monday (U.S. time).
Investors also closely watched the potential revision of the Commercial Act, which calls for expanding corporate directors' fiduciary duty to shareholders to better protect the rights of minority shareholders. Most big-cap shares traded higher.
Market bellwether Samsung Electronics surged 1.59 percent, while chip giant SK hynix sank 1.28 percent on profit taking. Leading battery maker LG Energy Solution increased 0.76 percent, and No. 1 steelmaker POSCO Holdings spiked 7.85 percent. Leading biotech firm Samsung Biologics gained 0.71 percent, and major financial firm KB Financial went up 0.81 percent.
Carmakers gathered ground. Top automaker Hyundai Motor climbed 1.47 percent, and its sister affiliate Kia advanced 1.75 percent. No. 1 online portal operator Naver advanced 0.57 percent, and Kakao, the operator of the country's dominant mobile messenger, soared 2.33 percent.
Defense giant Hanwha Aerospace added 0.47 percent, while nuclear power plant manufacturer Doosan Enerbility retreated 1.02 percent following sharp gains during the previous session. The local currency was trading at 1,354.8 won against the U.S. dollar at 11:20 a.m., down 4.8 won from the previous session.