Seoul shares open higher on chip gains despite Middle East tensions

Seoul shares started the trading day on a positive note on Wednesday, with gains in prominent chip manufacturers helping to counter the worries stemming from the ongoing Middle East tensions and the surge in oil prices. The Korea Composite Stock Price Index (KOSPI), which serves as the benchmark, saw an increase of 65.98 points, or 0.93 percent, bringing the index to 7,019.5 by 9:15 a.m.

Despite U.S. stocks ending on a downward trajectory due to the escalating Middle East tensions and the rising oil prices, the Philadelphia Semiconductor Index defied the market sentiment, experiencing a 1.3 percent gain fueled by ongoing optimism surrounding artificial intelligence. The surge in oil prices continued to gain momentum due to concerns over potential supply interruptions resulting from fresh strikes on energy infrastructure in the Middle East.

The tech giants played a significant role in driving the market upwards in Seoul. Samsung Electronics, the market bellwether, witnessed a rise of 0.37 percent, while chip leader SK hynix increased by 1.78 percent. Automobile manufacturer Hyundai Motor also contributed to the upward movement, with its shares going up 0.78 percent.

Furthermore, defense firm Hanwha Aerospace experienced a notable surge of 2.43 percent. Additionally, Hanwha Ocean, a shipbuilder, reported a 4.18 percent gain after being designated as the preferred bidder for a Royal Thai Navy frigate.