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

South Korean stocks finished over 1 percent higher Wednesday, tracking overnight gains on Wall Street. The Korean won was trading sharply higher against the US dollar.

The benchmark Korea Composite Stock Price Index climbed 27.58 points, or 1.11 percent, to close at 2,509.27.

Trade volume was high at 429 million shares worth 9.7 trillion won ($6.71 billion), with winners outpacing losers 589 to 300.

Institutions and foreign investors combined bought a net 99 billion won worth of local shares, while retail investors sold a net 197 billion won.

Overnight, Wall Street stocks were buoyed by eased concerns over trade following US President Donald Trump's decision to pause the imposition of tariffs on Canada and Mexico for a month.

The S&P 500 finished up 0.72 percent, and the Dow Jones Industrial Average climbed 0.30 percent. The Nasdaq composite added 1.35 percent.

The US duties on China have officially taken effect, and China announced retaliatory tariffs on US imports. However, the market watchers expect both sides will soon engage in negotiations.

"China has set the implementation date for its tariffs on the US on Monday, while the US has imposed a 10 percent tariff as opposed to 60 percent, which Trump proposed during the campaign, leaving room for dialogue and negotiation between the two countries," Han Ji-young, an analyst at Kiwoom Securities, said.

In Seoul, most blue chips gained ground, with market heavyweight Samsung Electronics up 0.38 percent to 52,900 won and chipmaking rival SK hynix jumping 4.03 percent to 198,800 won.

Battery and automotive shares also advanced. LG Energy Solution climbed 3.6 percent to 345,000 won, and Hyundai Motor added 1.74 percent to end at 204,500 won.

Kakao Bank soared 7.28 percent to 22,850 won after reporting record earnings, while internet technology service provider LG CNS, which made its stock market debut, plunged 9.85 percent to 55,800 won.

The local currency was trading at 1,444.30 won against the US dollar at 3:30 p.m., up 18.6 won from the previous session. (Yonhap)