(2nd LD) Seoul stocks edge up on chip gains amid renewed AI optimism; Korean won up

SEOUL, Sept. 22 (Yonhap) -- South Korean shares continued their upward trend for a third consecutive day on Tuesday, as investors purchased major semiconductor stocks, following a surge on Wall Street due to renewed optimism in artificial intelligence (AI). The Korea Composite Stock Price Index (KOSPI) climbed 10.19 points, or 0.15 percent, to 7,017.91 after reaching a high of 7,171.44.

The benchmark index opened more than 2 percent higher but subsequently retreated as individual and institutional investors cashed in profits. On Monday, U.S. stocks experienced a rally, with the Nasdaq Composite surging 2.3 percent to a record-high and the S&P 500 gaining 1.5 percent, while the Dow Jones Industrial Average increased by 0.7 percent.

Investor sentiment improved significantly, fueled by a general rally in AI-related stocks, falling oil prices, and softer U.S. Treasury yields. Tech behemoth Meta's new AI agent, MUSE, achieved No. 1 ranking on the U.S. App Store, raising expectations that the proliferation of AI agents would boost demand for CPUs and servers, bolstering confidence in the domestic AI semiconductor value chain, noted Lee Kyung-min, an analyst at Daishin Securities.

Nevertheless, the KOSPI's strong opening fizzled after a brief rebound, resulting in a subdued finish after a robust start. The trading volume was relatively subdued, with 251.65 million shares worth 22.2 trillion won ($16.3 billion) changing hands, and there were more decliners than advancers -- 462 to 382. Market leaders Samsung Electronics rose 0.91 percent to 276,500 won, while its rival SK hynix dropped 1.5 percent to 1.84 million won after a higher opening.

The parent company of SK hynix, SK Square, gained 0.53 percent to 1.13 million won. The Korean won appreciated against the U.S. dollar, closing at 1,358.2 won per dollar, up 7.2 won from the previous session's close.