THe KOSPI index is displayed at a dealing room of Hana Bank in Seoul, Wednesday. Yonhap
Korean stocks rebounded by more than 2 percent to settle above the 7,800-point mark Wednesday as investors scooped up semiconductor and auto shares amid lingering Middle East tensions ahead of the U.S.-China summit. The local currency declined against the U.S. dollar.
Opening 1.69 percent lower, the benchmark Korea Composite Stock Price Index reversed course to close at 7,844.01, up 200.86 points, or 2.63 percent.
The index fell 2.29 percent to finish at 7,643.15 on Tuesday on profit hunting, ending a five-session bullish run driven by tech stocks.
Overnight, U.S. inflation in April rose at the fastest pace in nearly three years, while oil prices climbed back above $100 per barrel amid fading hopes for a Middle East peace deal.
Investor sentiment, however, improved on expectations that the upcoming U.S.-China summit could help ease concerns over the Iran conflict.
Market sentiment also improved as the prime minister and finance minister called on Samsung Electronics’ management and labor to sit again to resolve their sparring stance over a pay raise and bonus payments.
The two sides failed to narrow differences over sticky issues in overnight mediation talks.