Kospi rises as bargain hunters snap up deals

Stocks started higher Wednesday as investors hunted for bargains following a sharp slide the previous day sparked by escalating tensions in the Middle East.

A screen in Hana Bank's trading room in central Seoul shows the stock market prices as it opens on Wednesday. [YONHAP]

Stocks started higher Wednesday as investors hunted for bargains following a sharp slide the previous day sparked by escalating tensions in the Middle East.

The Kospi gained 8.58 points, or 0.33 percent, to 2,618.21 in the first 15 minutes of trading.

Overnight, the S&P 500 fell 0.2 percent and the tech-heavy Nasdaq edged down 0.1 percent, while the Dow Jones Industrial Average gained 0.2 percent.

U.S. Federal Reserve Chair Jerome Powell said in a forum in Washington that a series of recent inflation reports indicates it is likely to take longer than expected for the central bank to have confidence to start cutting its rates.

"If higher inflation does persist, we can maintain the current level of restriction for as long as needed," Powell said.

In Seoul, Samsung Electronics rose 0.38 percent, and SK hynix increased 0.78 percent.

LG Energy Solution climbed 0.82 percent. Samsung SDI and Posco Future M jumped 2.07 percent and 1.36 percent, respectively.

LG Chem also advanced 1.05 percent.

But carmakers lost ground, with Hyundai Motor down 1.24 percent and Kia down 0.52 percent.

The local currency was trading at 1,390.20 won against the greenback, down 4.3 won from the previous session's close.

BY LEE SOO-JUNG, YONHAP [lee.soojung1@joongang.co.kr]