Seoul: South Korean stocks traded more than 1.7 percent higher late Tuesday morning following a sharp drop the previous day. The benchmark Korea Composite Stock Price Index (KOSPI) had added 39.75 points, or 1.71 percent, to 2,367.95 as of 11:20 a.m.

According to Yonhap News Agency, the index had nosedived 5.57 percent on Monday due to panic selling triggered by concerns over an escalating global trade war, following U.S. reciprocal tariffs. Overnight on Wall Street, U.S. stocks finished mixed after President Donald Trump threatened higher tariffs on China. Treasury Secretary Scott Bessent mentioned that tariff negotiations are likely to start soon, with almost 70 countries having been in contact with the Trump administration.

In Seoul, chip, shipbuilding, and bio shares led the uptick. Chip giant Samsung Electronics saw a rise of 2.54 percent on its better-than-expected first-quarter earnings guidance, while its rival SK hynix jumped 4.25 percent. Major shipyard HD Korea Shipbuilding and Offshore Engineering increased 4.24 percent, and Hanwha Ocean soared 7.68 percent. SK Biopharm, SK Group's pharmaceutical unit, mounted 4.8 percent, and Samsung Biologics climbed 0.79 percent.

In the defense sector, leading firm Hanwha Aerospace saw a jump of 6.54 percent after announcing a revised capital increase plan, reducing it to 2.3 trillion won (US$1.56 billion) from 3.6 trillion won. Meanwhile, the local currency was trading at 1,466.6 won against the U.S. dollar at 11:20 a.m., down 1.3 won from the previous session.