Seoul: South Korean stocks rose slightly Tuesday to end a two-session losing streak as revived hopes for a U.S. rate cut and eased fears over artificial intelligence (AI) uncertainties boosted appetite for risky assets. The local currency gained sharply against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 11.72 points, or 0.3 percent, to close at 3,857.78. This marked the first daily gain since Friday, when the index tumbled 3.79 percent. The trade volume was light at 275.5 million shares worth 13.1 trillion won (US$8.9 billion), with decliners outnumbering gainers 553 to 325.

Foreign investors led the rebound, purchasing a net 116 billion won worth of stocks, while institutions and individuals dumped a net 79.3 billion won and 27.5 billion won, respectively. Overnight on Wall Street, the Dow Jones Industrial Average rose 0.44 percent and the Nasdaq composite jumped 2.69 percent on dovish comments from Federal Reserve members and eased concerns over inflated AI valuation.

"The Korean stocks tracked gains in the U.S. stock market led by tech shares," said Han Ji-young, a researcher at Kiwoom Securities. In Seoul, tech and energy shares finished in positive territory. Tech giant Samsung Electronics rose 2.69 percent to 99,300 won, and Hanmi Semiconductor, a major chip equipment maker, climbed 0.42 percent to 120,100 won.

Energy firm Doosan Enerbility gained 1.38 percent to 73,500 won, and the state-run utility firm Korea Electric Power Corp. soared 6.85 percent to 51,500 won. Battery shares were also bullish as industry leader LG Energy Solution climbed 0.36 percent to 413,500 won and Samsung SDI increased 1.25 percent to 284,500 won.

No. 1 internet portal operator Naver, however, sank 3.07 percent to 253,000 won, and food giant CJ Cheiljedang dropped 2.33 percent to 209,500 won. Chipmaker SK hynix edged down 0.19 percent to 519,000 won.

The local currency was quoted at 1,472.4 won against the greenback at 3:30 p.m., up 4.7 won from the previous session. Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys fell 0.2 basis point to 2.902 percent, and the return on the benchmark five-year government bonds dropped 0.8 basis point to 3.099 percent.