Seoul shares turned higher late Wednesday morning as investors bet the longest-ever U.S. government shutdown will come to an end this week.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 45.87 points, or 1.12 percent, to 4,152.26 as of 11:20 a.m.
The main index opened lower on losses in technology stocks but reversed course as major tech issues rebounded or pared earlier losses.
Overnight, U.S. stocks closed mixed. The Dow Jones Industrial Average rose 1.18 percent, while the tech-heavy Nasdaq Composite slipped 0.25 percent.
Technology shares on Wall Street weakened after SoftBank Group sold its entire stake in Nvidia Corp. to help finance artificial intelligence (AI) investments.
Progress toward ending the U.S. government shutdown boosted investor sentiment.
The record-setting 42-day shutdown is expected to end as early as Wednesday (U.S. time) after the Senate passed a temporary spending package. U.S. President Donald Trump has expressed support for the legislation.
Institutions bought a net 421.58 billion won (US$287 million) worth of stocks, while foreigners and individuals sold 303.6 billion won and 126.8 billion won, respectively.
In Seoul, most large-cap stocks advanced.
Market bellwether Samsung Electronics rose 0.1 percent, and top carmaker Hyundai Motor climbed 2.7 percent.
Leading shipbuilder HD Hyundai Heavy Industries rose 0.56 percent, and leading battery maker LG Energy Solution gained 0.95 percent.
Among decliners, state-run utility firm Korea Electric Power Corp. fell 1.11 percent, and state-run Korea Gas Corp. declined 0.23 percent.
The local currency was trading at 1,466.45 won against the U.S. dollar at 11:20 a.m., down 3.15 won from the previous session.
