Seoul: South Korean shares opened sharply higher Friday, led by gains in major chipmakers, tracking an overnight rally in U.S. shares, as latest U.S. data eased woes over accelerating inflation. The benchmark Korea Composite Stock Price Index (KOSPI) opened 182.33 points, or 2.7 percent, higher at 6,995.67.

According to Yonhap News Agency, the U.S. stock market rose to an all-time high amid easing oil prices. The SandP 500 climbed 0.7 percent, while the Dow Jones Industrial Average added 0.1 percent, and the tech-heavy Nasdaq Composite gained 0.8 percent. The rise in U.S. markets was attributed to cooling wholesale inflation in July as energy and food costs declined. This, along with last week's weaker than expected job data, is expected to lessen pressure on the Federal Reserve to tighten policy.

This positive sentiment was reflected in the South Korean market, where major chipmakers saw significant gains. The eased concerns over inflation in the U.S. provided a boost to investor confidence, resulting in a strong opening for the KOSPI. The developments are being closely monitored by market participants, who are assessing the implications for future monetary policy decisions.