Seoul: South Korean stocks finished higher for the second straight session on Wednesday as investors hunted for bargains amid the market's recent volatility caused by the U.S.-Iran war. The local currency rose against the greenback.

According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) moved up 77.36 points, or 1.4 percent, to close at 5,609.95 after rising as high as 5,746.36. The South Korean stock market has been impacted by the escalating Middle East crisis this week, dipping 5.96 percent on Monday and rebounding 5.35 percent on Tuesday.

Investors bought blue-chip shares following the recent correction as they monitored the situation at the Strait of Hormuz, where the passage of ships has been virtually suspended due to the conflict. The Korean won was trading at 1,466.5 won against the U.S. dollar, up 2.7 won from the previous session, as of 3:30 a.m.