Seoul: South Korean stocks traded higher late Tuesday morning as investors' sentiment was boosted by overnight gains on Wall Street. The benchmark Korea Composite Stock Price Index (KOSPI) added 46.35 points, or 1.47 percent, to 3,194.1 as of 11:20 a.m.
According to Yonhap News Agency, U.S. stocks gained ground on hopes the Federal Reserve may implement multiple rate cuts later this year to support the economy following a weaker-than-expected jobs report released over the weekend. The Dow Jones Industrial Average closed 1.34 percent higher, with the tech-heavy Nasdaq composite climbing 1.95 percent and the S and P 500 rising 1.47 percent.
In Seoul, big-cap tech and financial shares drove up the KOSPI. Market bellwether Samsung Electronics rose 0.57 percent, and its chipmaking rival SK hynix gained 1.65 percent, reflecting U.S. chip giant Nvidia's 3.62 percent increase Monday. Leading battery maker LG Energy Solution jumped 3.06 percent, and defense powerhouse Hanwha Aerospace soared 2.77 percent. KB Financial spiked 3.41 percent, and Shinhan Financial surged 2.88 percent.
Major shipbuilders were also bullish, with HD Hyundai Heavy up 1.94 percent and Hanwha Ocean rising 1.22 percent. HD Korea Shipbuilding shot up 4.74 percent. The state-run Korea Electric Power also increased 2.15 percent. However, Kakao, the operator of the country's dominant mobile messenger, slid 2.53 percent.
The local currency was trading at 1,386.5 won against the greenback at 11:20 a.m., down 1.3 won from the previous session.