South Korean stocks closed higher on Wednesday as gains in major chipmakers, fueled by continued optimism over AI, outweighed concerns over escalating tensions in the Middle East.
Escalating hostilities between the U.S. and Iran pushed Brent crude to $99.49 a barrel in early trading on Wednesday after the U.S. struck five Iranian oil tankers and Tehran responded with missile attacks on U.S. forces and vessels in the region.
The Korea Composite Stock Price Index, or Kospi, increased by 97.12 points, or 1.4%, to close at 7,051.64. The Kosdaq also rose by 18.49 points, or 2.3%, to close at 830.37.
In economic news, South Korea's seasonally adjusted unemployment rate fell marginally to 2.7% in August from 2.8% the previous month, according to data from the Ministry of Data and Statistics released on Wednesday.
The reading was in line with Trading Economics' forecast, but was down from 2.8% the previous year.
The number of unemployed persons totaled 588,000 in August, down from 776,000 in July.
The labor force participation rate edged down to 64.6% in August from 65% in July, with the total number of employed persons rising to 29.2 million from 29.1 million the previous month.
In corporate news, Posco (KRX:005490) union workers began the first day of their two-day partial strike on Wednesday after negotiations with management over wages and other compensation failed in South Korea, Yonhap News reported the same day.
Workers began a 48-hour partial strike, with 40 participating employees at the Pohang plant and 80 at the Gwangyang plant. The union is seeking a 7.1% base pay raise, a 600% performance bonus, 50 company shares per worker and a 200% holiday bonus, while management has proposed a 2% wage hike, the report said.
The steelmaker expects negligible impact on production due to the lower worker participation and plans measures to prevent overall operational disruptions.
Posco did not immediately respond to a request for comment from MT Newswires.
Shares of the company rose nearly 3% at market close.
