Seoul: Seoul shares opened sharply higher Wednesday, tracking overnight gains on Wall Street, amid eased woes over artificial intelligence (AI) profitability and hopes for an interim agreement between the United States and Iran over the Strait of Hormuz. After opening 3.85 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) was up 299.03 points, or 4.7 percent, at 6,657.98 as of 9:15 a.m.

According to Yonhap News Agency, the index rose 1.62 percent Tuesday after plunging 5.12 percent the previous day. Overnight, U.S. stocks advanced as investors bet that a possible agreement to reopen the crucial shipping route could extend the recent decline in oil prices and ease inflationary pressures. Also, strong earnings reports from key firms, such as enterprise software firm Palantir Technologies, helped ease woes over massive investment into the AI sector by major tech firms.

The Dow Jones Industrial Average rose 1.71 percent to 54,085.88, while the tech-heavy Nasdaq Composite climbed 2.59 percent to 26,584.99. In Seoul, tech stocks led the gains. Market bellwether Samsung Electronics jumped 4.38 percent, and its chipmaking rival SK hynix surged 7.29 percent. Top carmaker Hyundai Motor rose 3.82 percent, and HD Korea Shipbuilding and Offshore Engineering climbed 2.94 percent.

Among decliners, tobacco firm KTandG fell 0.57 percent and Hybe, the K-pop powerhouse behind global superstars BTS, declined 0.06 percent. The Korean won was trading at 1,429.20 won against the U.S. dollar as of 9:15 a.m., down 0.2 won from the close of stock trading the day before.