Seoul shares hit fresh 10-week high

South Korean shares rose to a new 10-week closing high on Wednesday as the Federal Reserve's decision to put US interest rates on hold was seen setting the grounds for a soft landing in the world's largest economy.
For the second consecutive session, the gains were led by exporters such as LG.Philips LCD Co Ltd, which erased earlier losses to surge late in the session.
KT&G Corp, South Korea's top tobacco firm, rose 2.09 percent to 58,700 won after saying it will return up to $2.9 billion to shareholders over the next three years, bending to pressure from US investors Carl Icahn and partners.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 0.29 percent to end at 1,314.93, marking its highest close since May 30. The session was volatile, with the index falling as much as 1.05 percent in morning trade and gaining as much as 0.79 percent.
The Federal Reserve on Tuesday halted a more than two-year string of rate increases, as it gauges whether a slowing US economy will keep inflation in check. Although the US central bank left open the possibility of more monetary tightening, investors in South Korea appeared unfazed.
Global markets have fallen sharply since mid-May amid concerns that inflationary pressures would force the Fed to continue raising US interest rates in spite of signs of a slowing economy. The KOSPI is still down 4.7 percent for the year.
Exporters rose, with flat panel maker LG.Philips LCD Co Ltd gaining 1.15 percent to 35,250 won, while chip maker Samsung Electronics Co Ltd rose 0.16 percent to 616,000 won. Among other gainers, Shinhan Financial Group rose 1.62 percent to 47,100. But LG Card fell 0.39 percent to 51,600 won.
State-run power provider Korea Electric Power Corp fell 0.68 percent to 36,350 won. Trade volume reached 228 million shares worth 3.2 trillion won, data at 0620 GMT showed, compared to 188.2 million shares worth 2.3 trillion won on Tuesday. Gainers trumped decliners by 412 to 333 with 91 titles ending flat.
Foreign investors sold a net 96.3 billion won in shares on the main bourse, while retail investors sold a net 71.6 billion won. However, institutional investors bought a net 125.5 billion won. The September KOSPI 200 futures index rose 1.75 points to 172.30, while the underlying KOSPI 200 spot index gained 0.43 point to 171.11. South Korea's junior and tech heavy Kosdaq market gained 1.07 percent to finish at 552.32.