Seoul stocks up late Thursday morning on extended chip rally

Seoul stocks were trading higher late Thursday morning, as retail investors snapped up semiconductor heavyweights.

The benchmark Korea Composite Stock Price Index (KOSPI) was trading up 64.35 points, or 0.73 percent, to 8,928.59, as of 11:20 a.m. The index trimmed earlier gains on foreign selling, after nearing the 9,000-point mark in early trading.

Investors are remaining cautious over the U.S. Federal Reserve's policy direction, after the central bank decided to keep the country's policy rate steady for the fourth consecutive time, and hinted at a rate hike this year to tame inflation.

In Seoul, most large-cap shares were trading lower, while semiconductors gathered ground.

Samsung Electronics rose 0.94 percent, and its industry rival SK hynix advanced 4.05 percent.

In contrast, top carmaker Hyundai Motor shed 1.94 percent, nuclear power plant builder Doosan Enerbility fell 1.84 percent, and defense giant Hanwha Aerospace dipped 1.39 percent.

The local currency was trading at 1,524.5 won against the U.S. dollar, down 11.1 won from the previous session.