Kospi opens higher on continued chip rally

Seoul stocks opened higher Wednesday, boosted by a continued chip rally, while investors brace for the nation's pension fund's stock rebalancing.

After opening sharply higher, the benchmark Kospi rose 45.89 points, or 0.54 percent, to 8,522.37, as of 9:15 a.m.

The index followed overnight gains on Wall Street, as chip stocks continued their rally and prospects for peace talks between the United States and Iran remain valid.

The two sides are poised to hold fresh talks in Qatar this week, following a weekend of hostilities in the Middle East.

Investors are also keeping an eye on the rebalancing of the National Pension Service's stock portfolio, which is scheduled to start on Wednesday.

June's export results are likely to provide varying degrees of momentum in the stock prices of chip-related sectors, according to Han Ji-young, an analyst from Kiwoom Securities.

The country's exports topped $100 billion for the first time in June, with exports of semiconductors growing nearly threefold on year, to surpass $40 billion, according to the industry ministry.

"Though risks related to the Middle East war and inflation have yet to disappear, the market has already digested some of the concerns through multiple corrections," the analyst said.

Most large-cap shares were trading higher.

Chip giant Samsung Electronics fell 0.45 percent, while its industry rival SK hynix added 0.26 percent.

Top car maker Hyundai Motor advanced 2.73 percent, ship builder HD Heavy Industries moved up 4.39 percent, and defense giant Hanwha Aerospace climbed 5.13 percent.

The won weakened by 0.7 won from the previous session to trade at 1,550.1 won against the dollar.

Yonhap