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

Seoul stocks climbed nearly 1 percent on Wednesday, driven by share buybacks from major chipmakers and a stabilizing global environment, as investors awaited Nvidia's earnings announcement. The Korea Composite Stock Price Index (KOSPI) finished 65.47 points higher, or 0.97 percent, at 6,808.21, with trading volume at 323.3 million shares worth 22.38 trillion won.

Winners surpassed losers 584 to 273. The index rebounded from early trading volatility, thanks to institutional investors turning into net buyers, acquiring a net 760.37 billion won. Foreign and retail investors were net sellers, offloading a combined 2.36 trillion won.

Analysts noted the KOSPI's climb above the 6,800 level was fueled by stock repurchases, while lower global oil prices and reduced U.S. Treasury yields improved investor sentiment. SK hynix and Samsung Electronics, leading chip firms, repurchased shares, heightening market interest. Nvidia's earnings release was expected to serve as a crucial gauge for the global AI infrastructure sector.

Samsung Electronics rose 1.75 percent to 261,500 won, and SK hynix increased 0.6 percent to 1,688,000 won. Hyundai Motor dropped 3.09 percent to 408,000 won, while defense firm Hanwha Aerospace fell 1.36 percent to 1,087,000 won. KB Financial, a major financial firm, edged up 0.12 percent to 166,600 won.

Reports suggested the U.S. government proposed a joint acquisition of Westinghouse Electric Corp., a Canadian-owned nuclear company, involving South Korea. The Korean won traded at 1,384.8 won to the U.S. dollar by 3:30 p.m., up 1.3 won from the prior session.