Seoul stocks open 1.2% higher despite overnight weakness in U.S. tech stocks

Stocks opened higher on Friday as investors snapped up bargain-priced semiconductor shares following the previous session's sharp sell-off, despite overnight weakness in U.S. technology stocks.

After opening 1.2 percent higher, the Kospi trimmed some of its earlier gains, rising 53.44 points, or 0.7 percent, to 7,701.53 as of 9:15 a.m.

The index plunged 7.89 percent in the previous session, dragged by a heavy sell-off in Samsung Electronics and SK hynix.

Overnight, The Dow Jones Industrial Average rose more than 1 percent to a record high as weaker-than-expected June jobs data eased concerns over a near-term interest rate hike. The tech-heavy Nasdaq fell 0.8 percent, weighed down by another sharp sell-off in semiconductor stocks.

The Philadelphia Semiconductor Index tumbled 5.4 percent, extending its decline for a second consecutive session.

Meanwhile, investors are watching reports that AI startup Anthropic is in talks with Samsung Electronics to develop a custom AI chip.

Chipmakers rebounded from the previous session's sharp fall.

Samsung Electronics rose 3.67 percent, and SK hynix gained 1.37 percent.

In contrast, AI investment firm SK Square declined 2.23 percent, and automaker Hyundai Motor backtracked 2.39 percent.

The won rose 9.5 won from the previous session to trade at 1,546.3 against the greenback. 

Yonhap