The benchmark KOSPI rose 1.37 percent or 90.71 points to close at 6,717.97, snapping a four-session losing streak.
The index opened 0.24 percent lower at 6,611.24 and fell as low as 6,598.87 before reversing course, eventually closing at its intraday high.
Overseas investors sold a net 1.68 trillion won (US$1.26 billion) of KOSPI shares, extending their selling streak to six sessions and bringing cumulative net sales over the period to nearly 12 trillion won.
Institutions bought a net 1.21 trillion won, while other corporations purchased a net 1.66 trillion won. Retail investors sold a net 1.19 trillion won.
Foreign investors, however, bought a net 301.4 billion won in KOSPI 200 futures.
Semiconductors led the advance. SK hynix jumped 4.08 percent to 1,759,000 won, while Samsung Electronics gained 2.01 percent to 253,500 won.
SK hynix extended gains after reports that the memory chipmaker was discussing with Intel the possibility of producing memory chips in the U.S., which would mark its first memory production there. Samsung Electro-Mechanics rose 4.86 percent and SK Square gained 2 percent.
The gains were less pronounced outside technology. Hyundai Motor fell 1.36 percent, Samsung Biologics slipped 0.21 percent and Hanwha Aerospace lost 0.75 percent. Information technology stocks climbed 4.78 percent and electrical and electronics shares gained 2.81 percent, while construction stocks fell 2.37 percent and utilities declined 1.60 percent.
Telecommunications-related stocks also rallied. Telecommunications equipment shares rose 6.4 percent, while optical communications and LED equipment themes gained 6.42 percent and 4.95 percent, respectively. Daehan Fiber Optics surged 14.1 percent.
The junior KOSDAQ rose 0.44 percent to 815.98 after falling as low as 801.12 earlier in the session.
Retail investors and institutions were net buyers, while foreign investors remained net sellers. Semiconductor equipment shares gained, while battery and biotechnology stocks weakened.
The won weakened 0.22 percent against the dollar to 1,336.7 won.
Investors kept a close eye on the Fed's interest rate decision, due early Thursday, as U.S. Treasury yields remained elevated.
Wall Street ended lower overnight, with the Dow Jones Industrial Average down 0.63 percent, the S&P 500 off 0.45 percent and the Nasdaq Composite 0.78 percent lower.
Nvidia rose 0.57 percent and Micron Technology gained 0.39 percent, helping the Philadelphia Semiconductor Index edge 0.40 percent higher.
Oil prices eased during Asian trading after surging in the previous session. West Texas Intermediate crude fell 1.7 percent to $104.05 a barrel, while Brent crude declined 1.04 percent to $107.60 amid continued supply concerns in the Middle East and Libya.
Elsewhere in Asia, Japan's Nikkei 225 gained 0.69 percent to 63,923.00, while China's Shanghai Composite rose 0.70 percent to 3,891.60. Hong Kong's Hang Seng Index added 0.20 percent to 24,703.45.
AJP Takeaways
- KOSPI rebounds 1.37 percent to 6,717.97, snapping a four-session losing streak as Samsung Electronics and SK hynix led gains.
- Foreign selling continues: Overseas investors dumped 1.68 trillion won of KOSPI shares for a sixth straight session, while institutions and other corporations absorbed the selling.
- Chips lead the recovery: SK hynix jumped 4.08 percent and Samsung Electronics rose 2.01 percent, while semiconductor equipment shares also strengthened on the KOSDAQ.
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