SEOUL, Sept. 2 (Yonhap) -- South Korean stocks closed almost 1 percent higher Tuesday as investors scooped up tech shares following a recent slump in the chip industry. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shot up 29.42 points, or 0.94 percent, to close at 3,172.35.
Trade volume was moderate at 304 million shares worth 8.5 trillion won (US$6.1 billion), with gainers beating losers 484 to 376.
Foreigners bought a net 389 billion won, snapping their five consecutive sessions of selling. Individuals sold a net 347 billion won, and institutions sold a net 141 billion won.
Major tech shares rebounded across the board after plunging the previous session on reports that a Chinese company had developed a new artificial intelligence (AI) chip, which weighed on investor sentiment toward South Korean chipmakers.
"Following the short-term decline, investors digested the issue by analyzing its ripple effect and realistic outcome," said Lee Kyoung-min, an analyst at Daishin Securities.
Top market cap Samsung Electronics jumped 2.22 percent to 69,100 won, and No. 2 chipmaker SK hynix climbed 1.76 percent to 260,500 won.
Battery maker LG Energy Solution rose 0.29 percent to 350,000 won while Samsung SDI lost 0.25 percent to 202,500 won.
POSCO International rose 2.44 percent to 48,300 won on reports the company has secured a supply deal for motor cores with a North American firm.
Leading carmaker Hyundai Motor slipped 0.23 percent while its sister Kia gained 0.66 percent to 107,200 won.
The local currency was quoted at 1,391.0 won against the greenback at 3:30 p.m., up 2.7 won from the previous session.