Seoul:South Korean shares continued their upward trend for a fourth consecutive session on Wednesday, driven by strong gains in major semiconductor stocks, in line with the Nasdaq Composite's recent record performances. The local currency also strengthened against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose by 63.01 points, or 1.21 percent, concluding the day's trading at 7,080.92. The index had initially surged almost 2 percent higher before trimming gains as foreign and individual investors sold technology stocks to secure profits.

U.S. stock markets had a mixed performance on Tuesday, with technology shares sustaining a rally that boosted the Nasdaq Composite by 0.45 percent to a new high. Conversely, the Dow Jones Industrial Average decreased by 0.36 percent, and the S&P 500 edged down 0.06 percent. Investor sentiment was notably positive, bolstered by ongoing rallies in artificial intelligence-related stocks and optimism regarding eased tensions between the United States and Iran. Diplomatic efforts to resolve the Middle East standoff contributed to a reduction in global oil prices.

Lee Kyung-min, an analyst at Daishin Securities, noted that with the South Korean market closed for the upcoming Chuseok holiday, investors were cautious, awaiting key events. The market will remain closed on Thursday and Friday. He also mentioned that "foreign investors' net selling, coupled with institutional outflows, capped gains in the index."

Trade volume was relatively light, with 217.4 million shares exchanged, valued at 20.8 trillion won (approximately US$15.3 billion), and decliners outpacing advancers 546 to 310. Individual and foreign investors sold a net 1.4 trillion won and 51 billion won, respectively, while institutional investors purchased 31.6 billion won.

Among market heavyweights, Samsung Electronics increased by 3.25 percent to 285,500 won, and SK hynix rose by 1.2 percent to 1.86 million won. SK Square, the parent company of SK hynix, saw a significant jump of 5.03 percent to 1.19 million won. Meanwhile, the Korean won was quoted at 1,358.4 won per U.S. dollar, an increase of 0.2 won from the previous session's close.

In the bond market, prices closed higher as yields fell. The yield on three-year Treasurys dropped by 3.4 basis points to 4.006, while the return on benchmark five-year government bonds decreased by 4.7 basis points to 4.220.