The benchmark Korea Composite Stock Price Index (Kospi) opened higher on Wednesday, tracking overnight gains in US equities.

The positive start marks a continuation of the upward momentum that saw the index rise 0.26% on Tuesday, driven by a combination of Wall Street strength and a temporary cooling of geopolitical risks in the Middle East.

Despite the higher open, investor sentiment remains cautious.

Continued uncertainty surrounding tensions in the Middle East persists as a key concern for market participants, preventing a more robust rally.

The modest advance reflects a market balancing the pull of global equity strength against the drag of geopolitical instability.

South Korean stocks traded slightly higher late Tuesday morning, extending the positive session that began with the 0.26% gain.