Seoul shares close higher on oil price retreat, tech boost
The screen displays the KOSPI and KOSDAQ indices at a dealing room at Hana Bank's headquarters in central Seoul, Tuesday. Yonhap
Korean shares closed more than 1.5 percent higher Tuesday, rising for the second day, amid a drop in global oil prices and the strong performance of blue chip tech shares boosted by reignited optimism in the artificial intelligence (AI) sector.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 90.63 points, or 1.63 percent, to end at 5,640.48.
The KOSPI's rise was in line with overnight gains on Wall Street boosted by a drop in global oil prices that came amid expectations for the possible reopening of the Strait of Hormuz, a key Middle Eastern oil export route, and hopes for an additional plan for oil releases by major economies.
Brent crude oil prices, the international oil benchmark, dropped 2.8 percent to $100.21 per barrel, while the price of U.S. benchmark West Texas Intermediate (WTI) dipped 5.3 percent to $93.5.
The upbeat mood was also fueled by expectations for the AI market created after Nvidia's Chief Executive Officer (CEO) Jensen Huang said his company is expected to generate $1 trillion in sales within the next year.