Seoul stocks tad higher late Friday morning on chip gains

Seoul's stock market experienced a slight upward trend in late Friday morning, driven by gains in leading chip manufacturers. The optimism surrounding potential shareholder returns helped the market recover from early losses, despite growing worries about potential increases in U.S. Treasury yields.

Following a 1.35 percent opening decline, the Korea Composite Stock Price Index (KOSPI) was able to erase its earlier losses, advancing by 42.61 points, or 0.61 percent, to reach 6,894.69 by 11:20 a.m. Eastern time. U.S. Treasury yields began rising again on Thursday, reversing most of the previous day's decline after the U.S. Treasury announced an expanded bond buyback plan.

Earlier in the day, the Dow Jones Industrial Average dropped 1.32 percent, while the S&P 500 fell 0.87 percent. The tech-focused Nasdaq Composite Index also declined by 1 percent. In Seoul, the performance of major chip producers played a significant role in supporting the broader market, fueled by ongoing expectations of shareholder returns.

Samsung Electronics, the market's leading stock, climbed 3.04 percent after reports surfaced indicating the company could unveil a new shareholder return program valued at up to 110 trillion won ($79.7 billion) later that day. Its main competitor, SK hynix, mirrored the trend, surging 3.61 percent and continuing its recent rally.