Seoul: Seoul shares closed higher Thursday, driven by easing oil prices after U.S. President Donald Trump played down the prospect of a prolonged conflict with Iran. The Korean won also rose against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) opened 1.33 percent higher and rose 16.76 points, or 0.26 percent, to end at 6,579.48. This rebound followed a significant plunge of 3.99 percent in the previous session amid concerns over Middle East tensions and potential U.S. Federal Reserve rate hikes.

Overnight, the Dow Jones Industrial Average increased by 0.56 percent, while the tech-heavy Nasdaq Composite saw a gain of 0.45 percent. Trump indicated that any renewed U.S. attacks on Iran would likely be short-lived, alleviating inflation concerns and positively impacting market sentiment.

Trade volume was moderate, with 353.93 million shares worth 18.89 trillion won (US$14 billion) changing hands. The session saw losers slightly outnumber winners, with 431 to 424 respectively. Institutions, foreigners, and individuals were net sellers, offloading stocks worth 215.2 billion won, 423.4 billion won, and 954.9 billion won respectively.

In the Seoul market, auto and aerospace stocks led the gains. Top carmaker Hyundai Motor rose 1.46 percent to 383,500 won, and defense giant Hanwha Aerospace climbed 2.15 percent to 1.04 million won. Shipbuilder Hanwha Ocean surged 5.49 percent to 86,500 won, while shipping firm HMM gained 2.64 percent to 21,350 won.

Among the decliners, market bellwether Samsung Electronics fell 0.2 percent to 250,000 won, and its chipmaking rival SK hynix declined 1.05 percent to 1.59 million won. The Korean won was quoted at 1,359.3 won against the U.S. dollar as of 3:30 p.m., compared with 1,368.7 won from the previous stock trading session.