Seoul shares extended gains late Tuesday morning, buoyed by institutional buying despite Wall Street losses on rising oil prices and the Fed's hawkish comments on inflation.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 17.27 points, or 0.64 percent, to trade at 2,703.32 points as of 11:20 a.m.

Federal Reserve Chairman Jerome Powell said Monday (local time) the US central bank would raise its benchmark short-term interest rate faster than expected if that is needed to contain rampaging inflation.

US stocks declined after Powell's remarks, with the Dow Jones Industrial Average ending 0.6 percent lower. Oil prices continued to rise following Russia's invasion of Ukraine on Feb. 24.

Institutional investors bought 206 billion won ($168 million) worth of stocks, fully offsetting foreigners and individuals' stock selling valued at a combined 201 billion won.

Tech and auto stocks led gains across the board.

Market bellwether Samsung Electronics Co. rose 0.7 percent to 70,400 won, SK hynix Inc. climbed 0.8 percent to 508,000 won, and LG Electronics Co. was up 0.4 percent to 123,500 won.

Leading carmaker Hyundai Motor Co. jumped 2.7 percent to 173,500 won, and its affiliate Kia Corp. rose 0.4 percent to 70,800.

Among decliners, national flag carrier Korean Air Lines Co. fell 0.2 percent to 29,900 won, leading budget carrier Jeju Air Co. declined 1.6 percent to 20,950 won, and No. 1 shipping firm HMM was down 3 percent to 31,600 won.

The local currency was trading at 1,223.15 won against the US dollar, down 6.85 won from the previous session's close. (Yonhap)