South Korean Stocks Close Higher for Second Straight Session on Tech Gains, Rate Hike Concerns Linger

Seoul stocks closed sharply higher for a second consecutive session on Wednesday, with gains in technology shares providing support to the market.

However, higher-than-expected U.S. inflation data sparked concerns that the Federal Reserve could adopt a more aggressive tightening policy. The Korean won strengthened against the U.S. dollar.

The Korea Composite Stock Price Index (KOSPI) opened down 0.56 percent, then fluctuated upward, eventually rising 136.23 points, or 2.6 percent, to close at 5,375.36 points. It touched an intraday high of 5,377.99 points.

On Tuesday, the KOSPI had already climbed 4.39 percent, buoyed by gains in U.S. technology stocks and falling international oil prices. Despite an overnight decline on Wall Street, South Korean stocks moved higher against the trend.

The Dow Jones Industrial Average fell 0.3 percent, while the tech-heavy Nasdaq Composite dropped 0.74 percent. The U.S. Consumer Price Index (CPI) for October rose 0.3 percent month-on-month, exceeding market expectations, intensifying concerns over inflationary pressure and fueling expectations that the Fed may adopt a more aggressive monetary tightening policy.