(2nd LD) Stocks close nearly 1 pct higher on chip gains ahead of Nvidia earnings release

Seoul stocks ended nearly 1 percent higher on Wednesday, fueled by stock repurchases from major chip manufacturers and a dip in external factors, as investors await Nvidia's earnings announcement. The Korea Composite Stock Price Index (KOSPI) rose 65.47 points, or 0.97 percent, to 6,808.21, with a trading volume of 323.3 million shares worth 22.38 trillion won (US$16.15 billion).

Winners outpaced losers 584 to 273, marking a net buying by institutional investors, who purchased a net 760.37 billion won. Foreign and retail investors, however, were net sellers, offloading a combined 2.36 trillion won. Analyst Lee Kyoung-min from Daishin Securities attributed the KOSPI's recovery above the 6,800 mark to stock repurchases and a decline in global oil prices and U.S. Treasury yields, which bolstered investor confidence.

Chip leader SK hynix and Samsung Electronics executed stock buybacks, with SK hynix repurchasing around 650,000 shares and Samsung Electronics completing a purchase this week. Investors are also watching Nvidia's earnings release, which will likely serve as a key indicator for the global artificial intelligence (AI) infrastructure market.

Samsung Electronics saw a 1.75 percent increase to 261,500 won, while SK hynix rose 0.6 percent to 1,688,000 won. Industry giant Hyundai Motor declined 3.09 percent to 408,000 won, and defense firm Hanwha Aerospace dropped 1.36 percent to 1,087,000 won. Major financial institution KB Financial experienced a 0.12 percent increase to 166,600 won.

The Korean won weakened against the U.S. dollar, closing at 1,384.8 won, down 1.3 won from the prior session. Bond prices, inversely related to yields, were higher, with the three-year Treasury yield dropping 1.4 basis points to 3.816 percent, and the five-year government bond yield decreasing 0.6 percentage point to 4.033 percent.