Kospi opens higher amid revived AI hopes

Stocks opened higher Tuesday, led by gains in semiconductor stocks, amid escalating tensions in the Middle East that pushed up oil prices.

After opening 0.72 percent higher, the Kospi extended gains, trading 54.51 points, or 0.78 percent, up to 7,049.90 as of 9:15 a.m.

The index soared by more than 4 percent in the previous session on the back of a rally in tech stocks amid revived hopes for AI-related earnings momentum.

The U.S. stock market was closed on Monday for the Labor Day federal holiday.

Higher energy prices are fueling inflation concerns, with investors closely watching whether the Fed will raise rates or keep them on hold.

Investors are also awaiting Friday's inflation report for clues about the central bank's rate path.

Tehran said a deal with Oman to manage shipping through the Strait of Hormuz was imminent, while warning that ships faced the risk of attack off the Omani coast.

In Seoul, tech shares led the gains.

Samsung Electronics rose 1.11 percent, and SK hynix climbed 2.97 percent.

State-run utility Korea Electric Power Corporation jumped 3.82 percent, and refiner SK Innovation advanced 1.6 percent.

Among decliners, carmaker Hyundai Motor fell 0.76 percent and battery maker LG Energy Solution declined 1.24 percent.

The local currency rose 8.15 won from the previous session's close to trade at 1,338.55 won against the greenback at 9:15 a.m.

Yonhap