(URGENT) Seoul shares end higher amid lingering woes over AI, Iran crisis

Seoul shares experienced a mixed trading session on August 4, as retail investors bolstered stock prices following a 5 percent decline the previous day. Despite a 1.62 percent increase, the Korea Composite Stock Price Index (KOSPI) settled at 6,358.95, down from its low of 6,080.25. The index experienced a 5.12 percent drop on Monday, following a record 18 percent surge on Friday.

Trade volume remained moderate, with 310.58 million shares traded worth 27.87 trillion won. Winners significantly outnumbered losers, with a ratio of 786 to 95. U.S. stocks rose overnight, with Amazon gaining 4.5 percent after reporting strong earnings, lifting companies benefiting from AI demand. The Dow Jones Industrial Average climbed 1.32 percent to 53,178.41, while the tech-heavy Nasdaq composite gained 2.13 percent to 25,913.90.

Retail investors purchased stocks worth 818.4 billion won, while institutional and foreign investors sold 539.2 billion won and 370.56 billion won, respectively. Market uncertainty surrounds the potential impact of substantial AI investments on growth and profits. Investors are monitoring geopolitical developments and upcoming U.S. jobs data for insights into the Federal Reserve's rate policy.

Tech stocks, including Samsung Electronics and SK hynix, led the market advance. Meanwhile, Hyundai Motor and Korean Air declined. The Korean won weakened against the U.S. dollar, closing at 1,432.5 won, a 2.9 won decrease from the previous day. Bond prices climbed, with the yield on three-year Treasurys falling 0.2 basis point to 3.740 percent and the return on the benchmark five-year government bonds dropping 1 basis point to 4.004 percent.