Seoul stocks rise for 4th session on chip gains

South Korean shares continued their four-day winning streak on Wednesday, as investors flocked to major semiconductor stocks following the Nasdaq Composite's consecutive record closes. The Korea Composite Stock Price Index (KOSPI) rose by 1.21 percent, ending the day's regular trading session at 7,080.92. After opening nearly 2 percent higher, the KOSPI recouped some of its earlier gains as foreign and individual investors took profits, particularly from tech heavyweights.

The previous day's mixed performance of U.S. stocks, driven by continued technology share rallies, set the stage for today's gains in South Korean equities. The Dow Jones Industrial Average slipped by 0.36 percent, while the S&P 500 fell by just 0.06 percent. Investor sentiment improved significantly, fueled by an extended rally in artificial intelligence (AI) stocks and optimism surrounding the potential easing of tensions between the United States and Iran.

Diplomatic efforts to resolve the Middle East standoff also played a role, contributing to lower global oil prices.