Seoul shares surge 3 pct on renewed AI optimism, easing oil prices

Seoul shares experienced a 3 percent surge on Tuesday, propelled by optimism surrounding artificial intelligence (AI) and a dip in oil prices, according to Yonhap news agency. The Korean won strengthened against the U.S. dollar as well. The KOSPI index increased by 168.87 points, or 3.09 percent, reaching a close of 5,638.34. The Korea Exchange initiated a buy-side sidecar at 10:13 a.m., pausing buy orders in program trading for KOSPI-listed shares for five minutes.

This was the first such action in four trading sessions. The market's rally was driven by substantial foreign investment. On Wall Street overnight, the Dow Jones Industrial Average rose by 0.28 percent, the S&P 500 increased by 0.7 percent, and the technology-focused Nasdaq Composite grew by 0.82 percent. Investor confidence improved following the public disclosure of strong revenue growth by AI startup Anthropic during its U.S. initial public offering (IPO) filing.

This news rekindled enthusiasm for AI-related stocks ahead of significant tech earnings reports and the Federal Reserve's interest rate decision. Oil prices declined due to expectations of reduced tensions in the Middle East, following reports of Qatari mediation efforts involving Iran and the United States.