Seoul: South Korean stocks saw a rise of nearly 1 percent late Wednesday morning, driven by increasing anticipation of another rate cut by the Federal Reserve. The benchmark Korea Composite Stock Price Index (KOSPI) gained 29.11 points, or 0.85 percent, reaching 3,453.71 by 11:20 a.m.

According to Yonhap News Agency, the overnight performance on Wall Street contributed to this upward momentum, with the Dow Jones Industrial Average increasing by 0.18 percent and the Nasdaq composite by 0.31 percent. Investors are hopeful that concerns about an economic slowdown, potentially exacerbated by a possible U.S. government shutdown, might encourage the Fed to reduce key interest rates.

In the Seoul market, shares of semiconductor and drug companies traded positively. Samsung Electronics, a leading chip manufacturer, saw an increase of 2.38 percent, while its competitor SK hynix rose by 2.88 percent. Among pharmaceutical companies, Samsung Biologics and Celltrion each experienced a 1.15 percent uptick.

Additionally, Doosan Enerbility, a power plant manufacturer, experienced a significant rise of 3.35 percent, and the major shipbuilder HD Korea Shipbuilding and Offshore Engineering increased by 0.73 percent. Meanwhile, the local currency was trading at 1,406.7 won against the U.S. dollar as of 11:20 a.m., reflecting a decrease of 3.8 won from the previous session's close.