Seoul: Seoul stocks closed nearly 1 percent higher Wednesday, driven by stock repurchases from the country's chip giants and easing external conditions, as investors awaited the earnings release from Nvidia. Meanwhile, the Korean won fell against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) increased by 65.47 points, or 0.97 percent, to close at 6,808.21. The trade volume was moderate, with 323.3 million shares exchanged, valued at 22.38 trillion won (US$16.15 billion). The market saw winners outnumber losers by 584 to 273.

The index experienced choppy trading during the early hours but gained momentum as institutional investors became net buyers, purchasing a net 760.37 billion won. In contrast, foreign and retail investors were net sellers, offloading a combined 2.36 trillion won.

Lee Kyoung-min, an analyst at Daishin Securities, noted, "The KOSPI has recovered above the 6,800 mark, supported by stock repurchases, while a drop in global oil prices and U.S. Treasury yields helped boost investor sentiment." Notably, chip giant SK hynix has been conducting a stock buyback of around 650,000 shares since last Thursday, with Samsung Electronics joining this week.

Investors are keenly observing the upcoming earnings release from Nvidia, which is expected to serve as a critical indicator for the global artificial intelligence (AI) infrastructure market.

Market top caps showed mixed results, with top-cap Samsung Electronics gaining 1.75 percent to reach 261,500 won, while its competitor SK hynix rose by 0.6 percent to 1,688,000 won. However, Hyundai Motor saw a decline of 3.09 percent to 408,000 won, and defense giant Hanwha Aerospace slid 1.36 percent to 1,087,000 won. Major financial firm KB Financial edged up 0.12 percent to 166,600 won.

Shares in the nuclear sector gained traction following reports that the U.S. government has proposed a joint acquisition of shares in Westinghouse Electric Corp., a nuclear company owned by a Canadian private equity firm, with South Korea.

The Korean won was quoted at 1,384.8 against the U.S. dollar as of 3:30 p.m., marking a decline of 1.3 won from the previous session. Bond prices, which typically move inversely to yields, closed higher. The yield on three-year Treasurys decreased by 1.4 basis points to 3.816 percent, and the return on the benchmark five-year government bonds slightly fell by 0.6 percentage points to 4.033 percent.