(2nd LD) Seoul shares spike 3.5 pct on eased woes over Strait of Hormuz, AI

Seoul stocks surged 3.76 percent on Wednesday, propelled by reduced worries about artificial intelligence investments and optimism for a US-Iran agreement to reopen the Strait of Hormuz. The Korea Composite Stock Price Index (KOSPI) closed at 6,598.26, up 239.31 points. This marked a reversal from Tuesday's 1.62 percent drop after a 5.12 percent slump the previous day.

Trading volume was moderate at 335.16 million shares, with winning shares outnumbering losers 672 to 197. Foreign investors added 1.45 trillion won, while institutions and individuals sold 283.5 billion won and 1.18 trillion won, respectively. The Korea Exchange temporarily activated a buy-side sidecar for the index at 9:25 a.m. following technology sector gains.

U.S. stocks also rose, with the Dow Jones Industrial Average up 1.71 percent to 54,085.88 and the tech-heavy Nasdaq Composite climbing 2.59 percent to 26,584.99. Analyst Kang Jin-hyeok from Shinhan Securities noted that robust earnings from U.S. tech firms and the prospect of a Hormuz reopening eased concerns over heavy AI sector investments.

Samsung Electronics and SK hynix, top chipmakers, both rose over 5 percent. Hyundai Motor and Korean Air also climbed. Decliners included SK Innovation and S-Oil. The Korean won slipped slightly against the dollar, closing at 1,424.5 won, down 8 won from the previous day. Bond prices rose, with the yield on three-year Treasurys falling 7.1 basis points to 3.669 percent and five-year government bonds dropping 8.8 basis points to 3.916 percent.