(LEAD) Seoul shares open higher amid revived AI hopes

Seoul shares began the trading day on a positive note, buoyed by gains in semiconductor companies, as geopolitical tensions in the Middle East drove up oil prices. The Korea Composite Stock Price Index (KOSPI) rose 54.51 points, or 0.78 percent, to 7,049.90 by 9:15 a.m. local time, marking a 4 percent increase from the previous session's close.

This surge in stocks came after a tech sector rally, fueled by renewed optimism surrounding artificial intelligence (AI) earnings. The U.S. stock market, meanwhile, was on a break for Labor Day on September 7 (U.S. time). Higher energy costs are sparking inflation worries, with investors eagerly awaiting the Federal Reserve's decision on interest rates or whether to maintain the current level.

They are also eagerly anticipating Friday's inflation report, which could provide insights into the central bank's future rate trajectory. Iran announced an impending agreement with Oman to regulate shipping through the Strait of Hormuz, warning that vessels could be at risk of attack off the Omani coast. Market leaders like Samsung Electronics and SK hynix, key players in the semiconductor industry, both gained 1.11 percent and 2.97 percent respectively.

Other notable movers included Korea Electric Power Co., up 3.82 percent, and SK Innovation, a leading refiner, which climbed 1.6 percent. On the downside, Hyundai Motor dropped 0.76 percent and battery maker LG Energy Solution fell 1.24 percent. The Korean won was trading at 1,338.55 per U.S. dollar by 9:15 a.m., marking an 8.15 won increase from the prior trading session's close.