An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Thursday. (Yonhap)

Seoul shares rebounded sharply Thursday from the previous session's dip on tech, auto gains and revived optimism for the US Federal Reserve to cut rates this year. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index rose 35.03 points, or 1.29 percent, to close at 2,742.00.

Trade volume was moderate at 468.06 million shares worth 11.64 trillion won ($8.6 billion), with decliners outpacing gainers 465 to 416.

Foreigners bought a net 588 billion won worth of stocks, offsetting institutions and individuals' combined stock selling valued at 580 billion won.

The US central bank reiterated it will take a wait-and-see approach before cutting rates this year. But Powell's view that inflation figures did not materially change the Fed's overall picture revived an appetite for emerging-market assets.

Investors also took relief from weaker-than-expected US services purchasing managers index, released overnight, which offset strong manufacturing activity announced earlier this week.

In Seoul, tech and auto stocks led gains.

Market bellwether Samsung Electronics Co. rose 1.4 percent to 85,300 won, No. 2 chipmaker SK hynix Inc. jumped 4.9 percent to 188,000 won, top carmaker Hyundai Motor Co. gained 4.6 percent to 226,000 won, and leading battery maker LG Energy Solution Ltd. was up 0.9 percent to 379,500 won.

Among decliners, national flag carrier Korean Air Co. fell 1.1 percent to 21,250 won, leading shipbuilding group HD Hyundai declined 0.3 percent to 70,200 won, and leading cosmetics firm Amorepacific Corp. was down 2.4 percent to 132,400 won.

The local currency closed at 1,347.10 won against the greenback, up 1.8 won from the previous session's close. (Yonhap)