Seoul shares finished nearly 2 percent higher Tuesday, led by gains in techs and telecoms, as investors eye this week's US inflation data for clues on future rate hikes. The South Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index jumped 41.79 points, or 1.7 percent, to finish at 2,562.49, snapping its five-session losing streak.

Trading volume was moderate at 584.15 million shares worth 10.46 trillion won ($8.08 billion) with gainers outpacing decliners 625 to 249.

Institutions and foreigners bought a combined 443 billion won worth of stocks, offsetting individuals' stock selling valued at 445 billion won.

Overnight, the Dow Jones Industrial Average rose 0.6 percent, and the tech-heavy Nasdaq Composite climbed 0.2 percent.

Several Fed officials said Monday the US central bank will need to raise rates further this year to bring down inflation, but the end to its monetary tightening cycle is getting close.

Investors are hoping the US consumer price index data, to be released Wednesday, will support an end to the Fed's rate hikes, analysts said.

In Seoul, most large-cap stocks advanced.

Market bellwether Samsung Electronics Co. rose 2.9 percent to 71,500 won, No. 2 chipmaker SK hynix Inc. climbed 2.8 percent to 113,400 won, leading wireless services provider SK Telecom Co. gained 2.1 percent to 45,250 won and top carmaker Hyundai Motor Co. was up 0.7 percent to 207,000 won.

Among decliners, KG Mobility, formerly SsangYong Motor, fell 2.1 percent to 8,620 won, leading steel firm Posco Holdings declined 0.6 percent to 394,500 won and leading shipping firm HMM shed 1.2 percent to 18,100 won.

The local currency ended at 1,293.70 won against the US dollar, up 12.8 won from the previous session's close. (Yonhap)