(LEAD) Seoul stocks rise for 4th session on chip gains

Seoul stocks experienced a fourth consecutive day of gains on Wednesday, driven by strong performance in semiconductor shares, according to Yonhap news agency. The Korea Composite Stock Price Index (KOSPI) rose 1.21 percent, closing at 7,080.92 points. The local currency also strengthened against the U.S. dollar. The benchmark KOSPI index opened nearly 2 percent higher before adjusting its gains as some investors sought to lock in profits by selling tech heavyweights.

During the previous trading session, U.S. stocks were mixed, with the Nasdaq Composite reaching a record high, while the Dow Jones Industrial Average declined marginally. Despite this, investor sentiment improved, propelled by a surge in artificial intelligence-related stocks and expectations of reduced tensions between the U.S. and Iran, which contributed to lower global oil prices.

With the South Korean market closed for the Chuseok holiday, investors awaited key developments. Lee Kyung-min, an analyst at Daishin Securities, noted that foreign investors' net selling and institutional outflows limited the index's gains. Trade volume for the day totaled 217.4 million shares, amounting to 20.8 trillion won ($15.3 billion), with more shares declining than advancing (546 to 310).

Individuals and foreigners collectively sold a net of 1.4 trillion won and 51 billion won, while institutions purchased 31.6 billion won. Notably, Samsung Electronics and SK hynix, a chip rival, outperformed the market, rising 3.25 percent to 285,500 won and 1.2 percent to 1.86 million won, respectively. SK Square, the parent company of SK hynix, surged 5.03 percent to 1.19 million won.

As of 3:30 p.m., the Korean won was trading at 1,358.4 won per U.S. dollar, up 0.2 won from the previous session's close.