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

South Korean stocks reached nearly a 1% increase on Wednesday, driven by stock buybacks from major chip companies and a more favorable external environment as investors anticipate Nvidia's earnings release. The Korea Composite Stock Price Index (KOSPI) gained 65.47 points, or 0.97%, settling at 6,808.21. The index faced some volatility in the initial hours but made progress as institutional investors became net buyers.

Analyst Lee Kyoung-min from Daishin Securities noted that the KOSPI rebounded above the 6,800 level, buoyed by stock repurchases and a decline in global oil prices and U.S. Treasury yields, providing a positive boost to investor sentiment. SK hynix and Samsung Electronics have been actively repurchasing shares in recent days, and market participants are keenly watching Nvidia's upcoming earnings report, which is expected to serve as a critical gauge for the global artificial intelligence (AI) infrastructure market.