Seoul shares sharply up late Monday morning amid uncertainty over US-Iran talks

The KOSPI index is displayed at a dealing room of Hana Bank in central Seoul, Friday. Yonhap

Korean stocks traded higher late Monday morning as an extended rally in semiconductor shares offset concerns over U.S.-Iran negotiations to end their monthslong war.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 93.37 points, or 1.03 percent, to 9,145.79 as of 11:20 a.m.

The index opened 1.08 percent lower as investor sentiment was weighed down by overnight news reports that Washington-Tehran talks in Switzerland were halted after U.S. President Donald Trump threatened to strike Iran amid ongoing clashes between Israel and the Iranian-backed Hezbollah militant group.

However, strong gains in semiconductor-related shares supported the turnaround.

Market top cap Samsung Electronics rose 0.71 percent, and its chipmaking rival SK hynix jumped 4.67 percent.

SK Square, the parent of SK hynix, soared 8.48 percent, and LG Electronics surged 11.82 percent.

However, flag air carrier Korean Air dropped 2.86 percent, and internet giant Naver fell 1.74 percent.

The Korean won was trading at 1,538.3 won against the U.S. dollar as of 11:20 a.m., down 10.8 won from the previous session.