Seoul: South Korean stocks traded higher late Monday morning, driven by significant gains in chipmaking giant SK hynix and defense shares amid escalating tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) rose 16.43 points, or 0.57 percent, reaching 2,911.05 by 11:20 a.m.

According to Yonhap News Agency, major U.S. indexes experienced losses on Friday as Israel's airstrikes on Iranian military and nuclear facilities diminished investors' risk appetite. The Dow Jones Industrial Average dropped 1.79 percent, the tech-heavy Nasdaq composite fell 1.3 percent, and the S and P 500 decreased 1.13 percent.

In Seoul, significant movement was noted in the chipmaking sector as SK hynix saw an increase of 3.4 percent, whereas its competitor Samsung Electronics decreased by 2.06 percent. The defense sector also showed an upward trend, with Hanwha Aerospace gaining 2.75 percent, Hyundai Rotem soaring 5.25 percent, and Hanwha Systems rising 17.74 percent.

The shipbuilding industry saw positive results, with HD Hyundai Heavy increasing by 1.99 percent and HD Korea Shipbuilding climbing 2 percent. Additionally, major nuclear power plant manufacturer Doosan Enerbility surged 7.33 percent, and internet portal operator Naver advanced 2 percent.

However, not all sectors experienced gains. Leading battery maker LG Energy Solution fell by 1.86 percent, and the country's largest shipper, HMM, decreased by 1.03 percent. Meanwhile, the local currency was trading at 1,361.8 won against the US dollar at 11:20 a.m., marking an increase of 7.8 won from the previous session.