Seoul:Seoul shares ended higher, bolstered by institutional buying, as investors weighed concerns over whether significant investments in artificial intelligence infrastructure would yield adequate returns.

According to Yonhap News Agency, the Korean won was trading higher against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) initially opened 3.17 percent lower but reversed to close up 99.96 points, or 1.76 percent, at 5,768.01, having dropped as low as 5,488.41 earlier in the day.

Institutional investors purchased a net 574.66 billion won (approximately US$432 million) worth of shares. In contrast, foreign investors and retail investors sold a net 37.87 billion won and 1.09 trillion won, respectively.

Investors remained cautious ahead of earnings reports expected this week from major companies such as Tesla and Meta Platforms, as well as the upcoming U.S. midterm elections on November 3, amid ongoing uncertainty regarding interest rate outlooks, analysts noted.

IBK Securities mentioned that some investors appear to have bought large-cap stocks as bargain opportunities following recent sharp declines, which contributed to the index's positive movement despite reservations about substantial AI infrastructure spending.