An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Wednesday. (Yonhap)
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Wednesday. (Yonhap)

South Korean stocks rallied over 1 percent Wednesday to the highest in over two months on eased US tariff concerns. The local currency rose against the US dollar.

The benchmark Korea Composite Stock Price Index gained 29.03 points, or 1.15 percent, to close at 2,547.06, ending a three-session losing streak.

It also marked the highest closing price since Nov. 8, when the index finished at 2,561.15.

Trade volume was moderate at 570.7 million shares worth 10.8 trillion won ($7.51 billion), with decliners beating gainers 479 to 402.

Offshore investors scooped up a net 355 billion won, snapping their three-day selling streak.

Institutional investors also lent support to the rally by purchasing a net 411 billion won, while individuals sold a net 827.6 billion won.

Analysts said investors focused on US President Donald Trump's better-than-feared trade policies on his first day in office. He warned of imposing tariffs on Canadian and Mexican goods from Feb. 1 but stopped short of laying out detailed plans and other protectionist policies against trade partners.

Most shares closed higher across the board.

Market bellwether Samsung Electronics rose 1.5 percent to 54,300 won, and its chipmaking rival SK hynix jumped 3.44 percent to 225,500 won.

Top carmaker Hyundai Motor climbed 0.97 percent to 208,500 won, while its sister Kia surged 1.98 percent to 103,000 won.

Battery makers, who suffered a sharp loss the previous day, rebounded as industry leader LG Energy Solution increased 1.55 percent to 360,000 won and POSCO Future M vaulted 3.56 percent to 145,400 won.

Bank shares were also strong, with Hana Financial Group expanding 1.21 percent to 58,700 won and KB Financial Group adding 0.56 percent to 89,400 won.

The local currency was trading at 1,437.6 won against the greenback at 3:30 p.m., up 1.9 won from the previous session. (Yonhap)