(LEAD) Seoul shares end higher on chip gains despite Middle East tensions

Seoul shares finished up on Wednesday, propelled by a strong performance in the chip sector despite growing tensions in the Middle East. The Korea Composite Stock Price Index (KOSPI) surged 1.4 percent, or 97.12 points, to close at 7,051.64. The Korean won also strengthened against the U.S. dollar, closing at 1,336.1 per dollar, up 6.7 won from the previous session's close.

Major chipmakers such as SK hynix and Samsung Electronics led the rally, with SK hynix gaining 3.51 percent to 1.86 million won and Samsung Electronics remaining flat at 269,500 won. Battery manufacturers also benefited from the positive sentiment, with LG Energy Solution rising 6.46 percent to 371,000 won and Samsung SDI surging 8.3 percent to 574,000 won.

Additionally, Hanwha Ocean increased 2.32 percent to 88,100 won following its selection as the preferred bidder for a Royal Thai Navy frigate project valued at approximately US$500 million. Despite the external uncertainties, the launch of OpenAI's latest AI model, GPT-6 Astra, renewed optimism about the growth prospects of AI-related stocks, according to Lee Kyoung-min, an analyst at Daishin Securities.

Trade volume for the day was moderate at 318 million shares, totaling 22.3 trillion won, with 463 advancers and 398 decliners.