Seoul shares ended more than 1 percent higher Wednesday as foreign investors picked up blue chip tech shares in a bargain following the Korean stock market's two-day fall. The Korean won was trading higher against the US dollar.

The benchmark Korea Composite Stock Price Index (Kospi) added 27.62 points, or 1.12 percent, to close at 2,484.43.

Trade volume was moderate at 421.9 million shares worth 6.9 trillion won ($4.8 billion), with winners outnumbering losers 582 to 302.

Analysts said the Kospi gained ground as investors moved to buy blue chip tech shares following its two-day fall.

Foreigners and institutions purchased local shares worth 267.6 billion won and 134 billion won, respectively, while retail investors dumped 463.3 billion won.

Investors are also paying attention to the US Federal Reserve's rate decision to be made Wednesday, where the central bank is widely expected to make its third consecutive rate cut.

In Seoul, most big-cap shares gained ground.

Tech behemoth Samsung Electronics rose 1.29 percent to 54,900 won, while its chipmaking rival SK hynix lost 0.27 percent to 183,500 won.

Top automaker Hyundai Motor soared 4.84 percent to 216,500 won and its sister Kia shot up 6.37 percent to 101,800 won.

Financial and IT shares were also bullish.

KB Financial advanced 3.32 percent to 87,200 won, and Shinhan Financial climbed 2.77 percent to 50,000 won.

Internet portal operator Naver increased 1.43 percent to 212,500 won, and Kakao, the operator of the country's dominant mobile messenger, rose 1.28 percent to 43,400 won.

LG Electronics also jumped 5.41 percent to 91,500 won.

Battery shares were mixed, as industry leader LG Energy Solution dropped 0.26 percent to 381,500 won, while its smaller rival Samsung SDI surged 4.45 percent to 258,000 won.

The local currency was trading at 1,435.5 won against the US dollar at 3:30 p.m., up 3.4 won from the previous session. (Yonhap)