Seoul: South Korean stocks climbed by almost 1.5 percent Wednesday, as investors went bargain hunting for semiconductors. The Korean won dropped to an eight-month low against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) rose 57.28 points, or 1.43 percent, to 4,056.41. The KOSPI recovered to the 4,000 level after sliding to a nine-day low the previous session. Trade volume was moderate at 354.2 million shares worth 12.7 trillion won (US$8.6 billion). Winners outnumbered losers 531 to 343.

According to Yonhap News Agency, the rise in KOSPI was primarily driven by gains in major semiconductor companies like Samsung Electronics and SK hynix. Lee Kyoung-min, an analyst at Daishin Securities, noted that without the advances of these companies, the KOSPI would have remained weak. Lee also cautioned about potential short-term volatility due to ongoing foreign exchange risks and continued sell-offs from foreign investors.

Foreign investors sold off a net 28.9 billion won, while institutional investors purchased a net 335.7 billion won, and retail investors offloaded a net 337.7 billion won. Among large-cap shares, Samsung Electronics saw a significant rise of 4.96 percent to 107,900 won, and SK hynix increased by 3.96 percent to 551,000 won. However, other sectors experienced mixed results, with LG Energy Solution slipping 0.6 percent to 415,500 won and Hyundai Motor remaining unchanged at 286,000 won. Hanwha Aerospace slightly decreased by 0.57 percent to 870,000 won.

The local currency was quoted at 1,479.8 won against the greenback at 3:30 p.m., marking the lowest level since April 9. The decline came as foreign exchange authorities activated a currency swap with the country's pension operator, extending the $65 billion currency swap deal by one year. Meanwhile, bond prices rose, with the yield on three-year Treasurys falling 0.3 basis points to 2.996 percent, and the return on five-year government bonds decreasing by 1.7 basis points to 3.227 percent.