Seoul: South Korean stocks extended their winning streak for the fifth consecutive session on semiconductors, while investors remained cautious of the U.S. Federal Reserve's rate-setting meeting later this week. The benchmark Korea Composite Stock Price Index (KOSPI) rose 137.64 points, or 1.58 percent, to 8,864.24, inching closer to the 9,000-point mark.

According to Yonhap News Agency, the index, which opened lower, moved into positive territory in the afternoon, driven by buying pressure from retail and institutional investors. These groups net purchased a combined 1.1 trillion won (US$727.3 million), while foreign investors sold a net 992.3 billion won. Lee Kyoung-min, an analyst from Daishin Securities, noted that "risk-on sentiment following the peace agreement between the U.S. and Iran is coexisting with a wait-and-see stance ahead of the Federal Open Market Committee meeting."

Market watchers widely anticipate that the new Fed chair, Kevin Warsh, will opt for an on-hold decision during the policy meeting on Wednesday (local time). This expectation is bolstered by a decline in oil prices following the peace deal, which has reduced inflationary pressures. Additionally, a new state-run company responsible for executing Seoul's US$350 billion investment pledge to the United States is set to launch on Thursday, potentially boosting sectors such as shipbuilding, chips, and nuclear power plants.

Trade volume was moderate, with 565.1 million shares traded, valued at 34.8 trillion won. Losers outnumbered winners 525 to 347. Market heavyweights closed mixed, with semiconductors gaining traction. Samsung Electronics rose 1.02 percent to 346,500 won, while SK hynix advanced 5.84 percent to 2,521,000 won, setting a new record. The shipbuilding sector also saw gains, amid anticipation of the new investment firm's launch. Hanwha Ocean climbed 3.02 percent to 133,100 won, and HD Hyundai Heavy Industries increased 1.29 percent to 707,000 won.

Conversely, top carmaker Hyundai Motor fell 3.44 percent to 618,000 won, and major financial company KB Financial decreased 4.65 percent to 164,000 won. The Korean won was quoted at 1,513.4 won against the U.S. dollar as of 3:30 p.m., down 1.8 won from the previous session.