Seoul: South Korea's stock market trimmed earlier gains late Wednesday morning after it had hit the highest mark in more than three years shortly after opening. The benchmark Korea Composite Stock Price Index (KOSPI) had added 20.58 points, or 0.72 percent, to 2,892.43 as of 11:20 a.m.

According to Yonhap News Agency, earlier in the day, the KOSPI briefly breached the 2,900-point threshold for the first time since January 2022, driven by foreign investors' continued buying spree and hopes for easing of global trade uncertainties. Foreign investors continued their purchases of local shares for the sixth consecutive session, buying 66.3 billion won (US$48.4 million), while institutions bought 58.2 billion won, and retail investors sold 110.7 billion won for profit-taking.

Investors' risk appetite improved with expectations for a possible trade deal between the United States and China. Following two-day trade negotiations in London, U.S. Commerce Secretary Howard Lutnick stated that talks with China "went really, really well," and both sides agreed on a possible trade framework to resolve pending trade issues.

South Korea's election of new President Lee Jae-myung last week also contributed to improving investor sentiment, clearing domestic political uncertainties sparked by former President Yoon Suk Yeol's failed martial law bid, leading to his impeachment.

In the market, Samsung Electronics increased 0.76 percent, and SK hynix jumped 3.9 percent. Hyundai Motor rose 1.52 percent, and Kia climbed 1.69 percent. Doosan Enerbility soared 5.62 percent, and Kakao advanced 2 percent. Samsung Life Insurance surged 4.52 percent. Conversely, Hanwha Aerospace lost 1.71 percent, and HD Hyundai Heavy dropped 1.64 percent. Financial shares were weak, with KB Financial losing 2.43 percent and Shinhan Financial dipping 2.13 percent.

The local currency was trading at 1,370.4 won against the greenback at 11:20 a.m., down 6.1 won from the previous session.