Seoul shares open higher amid revived AI hopes

The Seoul stock market began the trading day on an upward trajectory on Tuesday, buoyed by a surge in semiconductor shares. This positive momentum was further fueled by the recent spike in oil prices, which have been driven by heightened tensions in the Middle East. The country's key index, the Korea Composite Stock Price Index (KOSPI), saw a rise of 50.40 points, or 0.72 percent, at the opening bell, marking a significant gain of over 4 percent from the previous trading session.

This recovery was largely attributed to renewed optimism surrounding the prospects of artificial intelligence (AI) earnings. It was worth noting that the U.S. stock market had observed a holiday on September 7 (U.S. time) to commemorate Labor Day. The rise in energy prices has prompted growing concerns about inflation, prompting investors to keenly observe the Federal Reserve's potential policy stance, whether to increase interest rates or maintain the current levels.

Additionally, market participants are eagerly anticipating the release of Friday's inflation report, which could provide valuable insights into the central bank's future rate decisions. Tehran also made a recent announcement regarding a forthcoming deal with Oman to regulate shipping activities through the Strait of Hormuz, concurrently warning of potential threats to ships in the vicinity of the Omani coast.