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Seoul shares ended more than 6 percent higher on Wednesday, driven by gains in technology heavyweights, after cooler-than-expected U.S. inflation data lifted Wall Street and eased concerns over near-term interest-rate hikes by the Federal Reserve.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 7,284.41, up 427.58 points, or 6.24 percent from a session earlier, Yonhap News Agency reported. The index opened 3.3 percent higher and extended gains through the session.

The Korean won strengthened against the U.S. dollar on the day.

Coverage comparison

Two Yonhap reports covered the consecutive sessions. The first, published Tuesday, described a rebound in technology heavyweights after the previous session's 9 percent plunge, but noted investor concerns about renewed tensions in the Middle East and uncertainty surrounding the artificial intelligence (AI) sector. The second, published Wednesday, focused on the sharp gains and attributed the rally to cooling U.S. inflation data, while acknowledging persistent Middle East tensions remained a key concern.

Both reports noted the influence of U.S. markets: On Tuesday, the Dow Jones Industrial Average fell 0.26 percent and the Nasdaq composite dropped 1.55 percent. On Wednesday, the Dow edged up 0.02 percent and the Nasdaq gained 0.9 percent.

Key claims

  • The KOSPI closed at 7,284.41 on Wednesday, up 6.24 percent.
  • Technology heavyweights led the gains.
  • The won strengthened against the U.S. dollar.
  • Institutional and foreign investors bought a net 182.68 billion won (US$123 million) and 2.32 trillion won worth of shares, respectively, while retail investors sold a net 2.47 trillion won.
  • On Tuesday, the KOSPI closed 0.73 percent higher at 6,856.83, after falling as low as 6,448.86.
  • The Tuesday rebound followed a 9 percent plunge in the KOSPI the previous session, driven by a massive sell-off in technology stocks.
  • Investors monitored Middle East developments following the latest exchange of attacks between the United States and Iran over the status of the Strait of Hormuz, according to analysts cited by Yonhap.
  • On Tuesday, investors remained concerned about renewed Middle East tensions and uncertainty in the AI sector.