▲ This photo taken Sept. 3, 2026, shows the dealing room of Hana Bank in Seoul after the market close. (Yonhap)

(ATTN: ADDS bond yields at bottom; CHANGES photo)

SEOUL, Sept. 3 (Yonhap) -- Seoul shares closed higher Thursday, driven by easing oil prices after U.S. President Donald Trump played down the prospect of a prolonged conflict with Iran.

The Korean won rose against the U.S. dollar.

After opening 1.33 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) rose 16.76 points, or 0.26 percent, to end at 6,579.48.

The rebound came after the main index plunged 3.99 percent in the previous session amid concerns about tensions in the Middle East and the possibility of further U.S. Federal Reserve rate hikes.

Overnight, the Dow Jones Industrial Average rose 0.56 percent, while the tech-heavy Nasdaq Composite gained 0.45 percent.

Trump said renewed U.S. attacks on Iran would likely be short-lived, easing concerns about inflation.

Trade volume was moderate at 353.93 million shares worth 18.89 trillion won (US$14 billion), with losers outnumbering winners 431 to 424.

Institutions, foreigners and individuals were all net sellers, offloading 215.2 billion won, 423.4 billion won and 954.9 billion won worth of stocks, respectively.

In Seoul, auto and aerospace stocks led the gains.

Top carmaker Hyundai Motor rose 1.46 percent to 383,500 won, and defense giant Hanwha Aerospace climbed 2.15 percent to 1.04 million won.

Shipbuilder Hanwha Ocean jumped 5.49 percent to 86,500 won, and shipping firm HMM gained 2.64 percent to 21,350 won.

Among decliners, market bellwether Samsung Electronics fell 0.2 percent to 250,000 won, and its chipmaking rival SK hynix declined 1.05 percent to 1.59 million won.

The Korean won was quoted at 1,359.3 won against the U.S. dollar as of 3:30 p.m., compared with 1,368.7 won from the previous stock trading session.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 4.2 basis points to 3.888 percent, and the return on the benchmark five-year government bonds declined 4.9 basis points to 4.118 percent.

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