Seoul: South Korean stocks traded more than 1 percent higher late Tuesday morning driven by sharp gains in chip shares and foreign buying. The benchmark Korea Composite Stock Price Index (KOSPI) had added 36.52 points, or 1.07 percent, to 3,443.83 as of 11:20 a.m., heading to a new record high.

According to Yonhap News Agency, the KOSPI has rallied in recent sessions, with the index reaching a new all-time high for the fourth consecutive session Monday. The KOSPI tracked overnight gains on Wall Street fueled by hopes the U.S. Federal Reserve will cut its key rates this week. The Dow Jones Industrial Average was up 0.11 percent, with the tech-heavy Nasdaq composite rising 0.94 percent and the S and P 500 adding 0.47 percent. In particular, electric vehicle giant Tesla jumped 3.56 percent, and Alphabet, the parent company of Google, soared 4.3 percent.

Investor sentiment was also boosted after U.S. Treasury Secretary Scott Bessent mentioned that U.S. President Donald Trump and Chinese leader Xi Jinping would speak Friday to possibly finalize the deal. In Seoul, chip shares were bullish, with Samsung Electronics jumping 2.22 percent and SK hynix soaring 5.59 percent.

Defense powerhouse Hanwha Aerospace surged 3.25 percent, and power plant manufacturer Doosan Enerbility escalated 4.25 percent. Shipbuilders were also strong, with HD Hyundai Heavy up 1.3 percent, Hanwha Ocean rising 1.51 percent, and HD Korea Shipbuilding gaining 1.94 percent. Internet portal operator Naver climbed 1.07 percent, and SK Square advanced 3.74 percent.

However, leading battery maker LG Energy Solution went down 0.35 percent, and automaker Kia dropped 0.49 percent. Kakao, the operator of the country’s top mobile messenger, dipped 2.03 percent. The local currency was trading at 1,383.0 won against the U.S. dollar at 11:20 a.m., up 6.0 won from the previous session.