South Korean stocks finished higher Wednesday as investor sentiment was boosted by Federal Reserve chief Jerome Powell's comments for a possible interest rate cut. The local currency traded weaker against the US dollar.

The benchmark Korea Composite Stock Price Index added 13.15 points, or 0.47 percent, to 2,794.01, rebounding from the previous session's 0.84 percent drop.

Trade volume was slim at 334.2 million shares worth 10.1 trillion won ($7.26 billion), with decliners beating gainers 586 to 269.

Foreigners returned to net buyers, scooping up a net 88.7 billion won, and institutions purchased a net 178.3 billion won. Individuals, however, dumped a net 259.1 billion won.

Overnight, Powell said recent economic data has made some "progress," fueling optimism for a rate cut by the US central bank.

In Seoul, battery, auto and bank shares led the upside mode.

Leading electric vehicle (EV) battery maker LG Energy Solution jumped 4.22 percent to 358,000 won, and Samsung SDI advanced 4.27 percent to 366,500 won.

Top carmaker Hyundai Motor rose 1.28 percent to 276,000 won after completing its EV battery plant in Indonesia in cooperation with LG Energy Solution.

KB Financial Group increased 1.44 percent to 84,400 won, and Shinhan Financial Group went up 3.23 percent to 51,100 won.

Semiconductor shares finished mixed, with Samsung Electronics, the world's largest memory chipmaker, staying flat at 81,800 won and No. 2 SK hynix gaining 1.72 percent to 236,000 won.

The local currency was trading at 1,390.6 won against the greenback as of 3:30 p.m., down 2.4 won from the previous session's close.

Starting Monday, South Korea's foreign exchange market for won-US dollar transactions will operate until 2 a.m. as part of the government's efforts to enhance investors' convenience and improve market access. (Yonhap)