Seoul: Stocks in Seoul closed nearly 1 percent higher Wednesday, driven by stock repurchases from the nation's leading chip manufacturers and favorable external conditions, as investors awaited the earnings release from Nvidia. The Korean won weakened against the U.S. dollar.

According to Yonhap News Agency, the Korea Composite Stock Price Index (KOSPI) rose by 65.47 points, or 0.97 percent, concluding at 6,808.21. The index experienced volatile trading during the morning session but gained momentum as institutional investors became net buyers.

"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," commented Lee Kyoung-min, an analyst at Daishin Securities.

SK hynix, a major player in the chip industry, has been executing a stock buyback of approximately 650,000 shares since last Thursday, with Samsung Electronics also participating this week. Market participants are also keenly observing the forthcoming earnings announcement from Nvidia, which is expected to provide crucial insights into the global artificial intelligence (AI) infrastructure market.