Seoul shares up nearly 2% late Tue. morning on tech rally

Seoul shares experienced a significant increase late Tuesday morning, propelled by gains in semiconductor stocks. This rise occurred as tensions in the Middle East intensified, causing oil prices to soar. The Korea Composite Stock Price Index (KOSPI), which opened 0.72 percent higher, ended the session up 1.82 percent at 7,122.93. This marked a 127.54 point increase from its opening price.

Institutional investors and foreign entities contributed significantly to the rally, purchasing a combined net worth of 483.31 billion won ($361 million) worth of stocks. Conversely, individual investors sold shares, resulting in a net loss of 1.25 trillion won.

The previous trading day had been marked by a more than 4 percent surge in the KOSPI, attributed to optimism surrounding tech companies and renewed hopes for AI-related earnings growth. The U.S. stock market, however, remained closed on September 7 due to the Labor Day federal holiday.

Energy prices have been a notable concern for investors due to their impact on inflation. The prospect of potential rate hikes by the U.S. Federal Reserve has added to these worries. The focus has shifted to Friday's inflation report, which may provide insights into the central bank's future monetary policy direction.

Recently, Iran announced a potential agreement with Oman aimed at regulating shipping through the Strait of Hormuz, further contributing to the market's sentiment.