(LEAD) Seoul shares open sharply higher amid eased woes over AI, Hormuz deal hopes

Seoul's stock market opened significantly higher on Wednesday, mirroring overnight gains on Wall Street. This positive sentiment was driven by eased concerns over artificial intelligence profitability and optimism surrounding potential interim arrangements between the United States and Iran regarding the Strait of Hormuz. The Korea Composite Stock Price Index (KOSPI) finished the day up 4.7 percent, reaching 6,657.98 points, marking a 3.85 percent increase from the opening bell.

This marked a sharp contrast to the previous day's 5.12 percent drop. The market's buoyancy was further fueled by strong earnings reports from key companies such as Palantir Technologies, which is a leading enterprise software firm. The Dow Jones Industrial Average surged 1.71 percent to 54,085.88, while the tech-focused Nasdaq Composite rose 2.59 percent to 26,584.99.

Among the notable gainers were Samsung Electronics, which gained 4.38 percent, and SK hynix, which surged 7.29 percent. Top automaker Hyundai Motor also saw a 3.82 percent increase, and HD Korea Shipbuilding & Offshore Engineering climbed 2.94 percent. Conversely, tobacco firm KT&G and K-pop conglomerate Hybe experienced declines of 0.57 percent and 0.06 percent, respectively.

The Korean won strengthened slightly to 1,429.20 per U.S. dollar, a 0.2 won increase from the previous trading day's close.