SEOUL, Aug. 5 (Yonhap) -- Seoul shares extended gains late Wednesday morning as easing concerns over artificial intelligence (AI) profitability and hopes for an interim agreement between the United States and Iran over the Strait of Hormuz lifted investor sentiment.

After opening 3.85 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) traded up 249.33 points, or 3.92 percent, to 6,608.28 as of 11:20 a.m.

The index rose 1.62 percent Tuesday after plunging 5.12 percent the previous day.

The Korea Exchange (KRX) activated a buy-side sidecar for the KOSPI for five minutes at 9:25 a.m. after the index surged on gains in technology stocks.

Overnight, U.S. stocks advanced as investors bet that a possible agreement to reopen the crucial shipping route could extend the recent decline in oil prices and ease inflationary pressures.

Strong quarterly earnings from major companies, including enterprise software firm Palantir Technologies, also helped ease concerns over heavy investment in the AI sector by major technology companies.

The Dow Jones Industrial Average rose 1.71 percent to 54,085.88, while the tech-heavy Nasdaq Composite climbed 2.59 percent to 26,584.99.

Institutions and foreign investors bought a net 370.8 billion won (US$260 million) and 427.7 billion won worth of shares, respectively, while retail investors sold a net 795.5 billion won.

In Seoul, tech stocks led the gains.

Market bellwether Samsung Electronics rose 2.71 percent, and its chipmaking rival SK hynix climbed 5.71 percent.

Top carmaker Hyundai Motor rose 3.06 percent, and national flag carrier Korean Air gained 4.02 percent.

Among decliners, leading refiner SK Innovation fell 1.62 percent, and S-Oil declined 1.35 percent.

kyongae.choi@yna.co.kr

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