Seoul: South Korean stocks closed nearly 1 percent higher Wednesday on reviving rate cut hopes and better-than-anticipated September export data. The local currency edged down against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 31.23 points, or 0.91 percent, to close at 3,455.83, rebounding from a 0.19 percent drop in the previous session.

Trade volume was moderate at 488.7 million shares worth 12.2 trillion won (US$8.69 billion), with losers beating gainers 476 to 385. Foreigners bought a net 845.9 billion won worth of shares and institutions scooped up a net 220 billion won. Individuals, on the other hand, dumped a net 1.1 trillion won.

Analysts indicated that concerns over an economic slowdown provoked by a U.S. government shutdown rekindled investor hopes for another rate cut by the Federal Reserve. Earlier data revealing that South Korea's exports increased 12.7 percent on-year to a record US$65.95 billion in September also contributed to reviving appetites for risky assets.

"Foreign investors remained net buyers on the KOSPI for three sessions in a row," remarked Lee Jae-won, an analyst from Shinhan Securities Co. "Semiconductors, energy, and shipbuilding shares pushed up the index." Chip giant Samsung Electronics rose 2.5 percent to 86,000 won and its rival SK hynix advanced 3.6 percent to 360,000 won, as a set of artificial intelligence (AI) deals involving the two companies are expected to be announced during a meeting between President Lee Jae Myung and OpenAI CEO Sam Altman later in the day.

Power plant manufacturer Doosan Enerbility climbed 3.03 percent to 64,600 won and Samsung C and T increased 2.11 percent to 188,500 won. Major shipbuilder HD Korea Shipbuilding and Offshore Engineering mounted 0.85 percent to 414,500 won and Hanwha Ocean inched up 0.09 percent to 110,400 won. Food makers were also strong as Nongshim jumped 3.24 percent to 445,500 won and Samyang Foods gained 1.9 percent to 1.5 million won.

However, defense giant Hanwha Aerospace fell 0.72 percent to 1.09 million won and top internet company Naver tumbled 5.21 percent to 254,500 won. The local currency was quoted at 1,403.2 won against the greenback as of 3:30 p.m., down 0.3 won from the previous session's close.