Seoul: South Korean stocks traded sharply higher late Wednesday morning, driven by escalating hopes for a rate cut in the United States. The benchmark Korea Composite Stock Price Index (KOSPI) had added 72.04 points, or 1.87 percent, to 3,929.82 as of 11:20 a.m.

According to Yonhap News Agency, U.S. stocks rallied overnight as recent economic data supported views that the Federal Reserve will lower the key rates at its monetary policy meeting next month. The Dow Jones Industrial Average rose 1.43 percent, and the Nasdaq composite gained 0.67 percent.

In Seoul, shares gained ground across the board. Market bellwether Samsung Electronics rose 1.91 percent, and top carmaker Hyundai Motor added 1.36 percent. Chemical shares were strong after the industry minister's strong comment on restructuring. LG Chem soared 7.16 percent, and Lotte Chemical vaulted 6.98 percent. Leading biotech firm Samsung Biologics advanced 2.95 percent, and Samyang Foods, best known for Buldak series ramyeon, jumped 5.11 percent.

The local currency was trading at 1,460.25 won against the U.S. dollar at 11:20 a.m., up 12.15 won from the previous session.