Seoul stocks extend gains late Fri. morning on bargain hunting

Seoul stocks continued their upward trend late Friday morning as bargain hunters snapped up large-cap technology shares. The Korea Composite Stock Price Index (KOSPI) surged by 154.88 points, or 2.79 percent, reaching 5,709.1 at 11:20 a.m. local time. Prior to the day's trading, the index had opened higher after an earlier drop of over 7 percent due to worries about the long-term viability of the artificial intelligence (AI) sector.

Wall Street's major indices had also posted gains overnight, despite declines in prominent AI stocks, as investors remained vigilant about the latest producer price data. In September, the U.S. Producer Price Index recorded its largest increase in 4 1/2 years, primarily driven by soaring energy prices sparked by the ongoing conflict in the Middle East. This data fueled anticipation that the Federal Reserve may maintain a cautious approach to interest rate hikes.

In Seoul, key players in the technology sector led the rally. Samsung Electronics and SK hynix each climbed more than 2 percent, while battery manufacturer LG Energy Solution rose 0.99 percent. Automotive giant Hyundai Motor gained 6.77 percent, and defense contractor Hanwha Aerospace experienced an impressive 9.1 percent increase. As of 11:20 a.m., the Korean won was valued at 1,345.7 won per U.S. dollar, marking a 3.7 won decrease from the previous trading session.