Seoul: South Korean stocks traded more than 1 percent higher late Wednesday morning as gains in major chipmakers and rising policy optimism pushed the main index above a yearly high. The benchmark Korea Composite Stock Price Index (KOSPI) had gained 46.64 points, or 1.43 percent, to 3,306.69 as of 11:20 a.m.
According to Yonhap News Agency, the index opened higher and further extended gains on the back of strong buying from foreign and institutional investors. Investor sentiment was lifted by growing expectations that President Lee Jae Myung may withdraw a previously proposed plan to lower the capital gains tax threshold on stock investments.
Market bellwether Samsung Electronics increased 1.54 percent, and chip giant SK hynix surged 4.69 percent. However, leading battery maker LG Energy Solution tumbled 1.44 percent, while defense giant Hanwha Aerospace surged 2.75 percent. No. 1 financial firm KB Financial Group jumped 5.46 percent.
The local currency was trading at 1,397.6 won against the greenback at 11:20 a.m., down 0.2 won from the previous session.