Seoul: South Korean stocks traded higher late Tuesday morning as investors were boosted by revived hopes for a rate cut in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) had added 36.91 points, or 0.96 percent, to 3,882.97 as of 11:20 a.m.

According to Yonhap News Agency, overnight, some dovish comments from Fed members and eased concerns over inflated AI valuation pushed up major U.S. stocks. The Dow Jones Industrial Average rose 0.44 percent, and the Nasdaq Composite jumped 2.69 percent.

In Seoul, tech and defense shares led the upbeat mode. Samsung Electronics rose 2.59 percent, and its rival SK hynix advanced 1.73 percent. Defense giant Hanwha Aerospace increased 1.4 percent, and Korea Aerospace Industries (KAI) soared 6.26 percent.

KB Financial Group, a major banking group, rose 1.75 percent, and energy firm Doosan Enerbility climbed 1.93 percent. The local currency was trading at 1,472 won against the U.S. dollar at 11:20 a.m., up 5.2 won from the previous session.