[DigitalToday reporter Oh Sang-yup] The KOSPI recovered the 6,600 level on joint net buying by foreign investors and institutions. Investor sentiment improved as the surge in U.S. long-term yields eased, while semiconductor heavyweights including Samsung Electronics and SK Hynix also rebounded. The Kosdaq rose nearly 3 percent to retake the 810 level.

On Sept. 4, the KOSPI ended up 107.73 points, or 1.64 percent, at 6,687.21. The index opened up 74.88 points, or 1.14 percent, at 6,654.36.

In the main board market, foreigners bought a net 479.3 billion won. Institutions also purchased 1.67 trillion won, leading the index higher. Retail investors sold a net 3.72 trillion won.

Top chip stocks by market capitalisation rose together. Samsung Electronics closed up 2.20 percent at 255,500 won, and SK Hynix ended up 3.20 percent at 1,647,000 won.

SK Square rose 6.12 percent, while Samsung Electro-Mechanics gained 3.93 percent.

LG Energy Solution fell 1.92 percent and Samsung Biologics slipped 2.03 percent. KB Financial Group and Samsung C&T dropped 3.32 percent and 1.34 percent, respectively. Hyundai Motor ended flat.

The Kosdaq's gain outpaced the KOSPI. The Kosdaq ended up 23.29 points, or 2.95 percent, at 813.50, recovering the 800 level after a day.

In the Seoul foreign exchange market, the won-dollar exchange rate was 1,350.20, down 8.30 won from the previous session.

The rebound in the domestic stock market appears to have been influenced by the easing of the rise in U.S. long-term yields and strength in U.S. stocks.

In the previous session, U.S. stocks rose after dovish comments from U.S. Federal Reserve Governor Christopher Waller. The Dow Jones index gained 1.18 percent, the Standard & Poor's 500 rose 1.06 percent and the Nasdaq added 1.40 percent. Nvidia also rose 1.8 percent.

Waller said there have recently been some signs of disinflation and said he would prefer holding rates steady in September if that trend continues over the next two weeks. This also helped ease the sharp rise in U.S. Treasury yields that had recently weighed on domestic and global markets.

Han Ji-young (한지영), an analyst at Kiwoom Securities, said it was necessary to note that the sharp rise in U.S. market rates, one of the key factors behind broad-based net selling, was easing. As time passes, the domestic supply-demand base will normalise and return to a path of raising its bottom, she said.