Kospi opens higher on chip gains despite Middle East tensions

Stocks opened higher Wednesday, as gains in major chipmakers offset lingering concerns over escalating tensions in the Middle East and rising oil prices.

After opening 0.26 percent higher, the benchmark Kospi extended gains, trading 65.98 points, or 0.93 percent, higher at 7,019.5 as of 9:15 a.m.

Overnight, U.S. stocks ended lower amid heightened Middle East tensions and rising oil prices, while the Philadelphia Semiconductor Index bucked the trend, gaining 1.3 percent on continued AI optimism.

Global oil prices extended gains amid concerns over potential supply disruptions following another round of strikes on energy infrastructure in the Middle East.

In Seoul, tech heavyweights led the gains.

Market bellwether Samsung Electronics rose 0.37 percent, while chip giant SK hynix went up 1.78 percent.

Top automaker Hyundai Motor increased 0.78 percent, while defense firm Hanwha Aerospace advanced 2.43 percent.

Hanwha Ocean gained 4.18 percent after the shipbuilder said it had been selected as the preferred bidder for a Royal Thai Navy frigate project worth about $500 million.

The Korean won weakened by 3.4 won from the close of the previous stock trading session, trading at 1,339.4 won against the U.S. dollar as of 9:15 a.m.

Yonhap