Seoul shares up nearly 2% late Tuesday morning on tech rally
The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Tuesday. Yonhap
Seoul shares extended their gains late Tuesday morning, led by semiconductor stocks, amid escalating tensions in the Middle East that pushed up oil prices.
After opening 0.72 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) was trading up 127.54 points, or 1.82 percent, to 7,122.93 as of 11:20 a.m.
Institutions and foreigners bought a net 483.31 billion won ($361 million) and 128.11 billion won worth of stocks, respectively. Individuals sold a net 1.25 trillion won.
The index jumped more than 4 percent in the previous session on a tech rally amid revived hopes for artificial intelligence (AI)-related earnings momentum.
The U.S. stock market was closed on Sept. 7 (U.S. time) for the Labor Day federal holiday.
Higher energy prices are adding to inflation worries as investors weigh the prospect of rate hikes by the U.S. Federal Reserve.
Friday's inflation report is now in focus for clues about the U.S. central bank's future rate path.
In the latest development in the Middle East, Tehran said a deal with Oman to manage shipping through the Strait of Hormuz was imminent, while warning that ships faced the risk of attack off the Omani coast.
In Seoul, tech shares led the gains.
Market bellwether Samsung Electronics rose 2.59 percent, and its chipmaking rival SK hynix climbed 3.98 percent.
State-run utility Korea Electric Power Co. jumped 4.58 percent, and leading refiner SK Innovation advanced 0.87 percent.
Among decliners, top carmaker Hyundai Motor fell 0.76 percent and leading battery maker LG Energy Solution declined 1.38 percent.
The Korean won was quoted at 1,337.85 won against the U.S. dollar as of 11:20 a.m., up 8.85 won from the close of the previous stock trading session.