Seoul shares ended higher for a second straight session Monday amid hopes that the US Federal Reserve will hint at a potential rate cut in September. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index added 33.63 points, or 1.23 percent, to close at 2,765.53.

Trading volume was moderate at 449.64 million shares worth 10.78 trillion won ($7.8 billion), with gainers outnumbering losers 634 to 244.

Institutions and foreigners bought a combined 522 billion won worth of stocks, offsetting individuals' stock selling valued at 485 billion won.

The outcome of the Fed's monetary policy meeting that starts Tuesday (US time) will set the overall tone of the market, with investors also focusing on earnings reports from major tech firms, such as Apple Inc., Amazon.com Inc. and Samsung Electronics Co., this week, analysts said.

The US central bank is widely expected to cut rates as early as in September.

In Seoul, tech and auto stocks led gains.

Market behemoth Samsung Electronics Co. rose 0.4 percent to 81,200 won, No. 2 chipmaker SK hynix Inc. climbed 2 percent to 195,600 won, top carmaker Hyundai Motor Co. jumped 4.9 percent to 255,500 won, and leading auto parts maker Hyundai Mobis Co. was up 1.1 percent to 228,000 won.

Among decliners, shipbuilder Hanwha Ocean Co. fell 2.8 percent to 30,100 won; SK Corp., the holding firm of SK Group, declined 1.2 percent to 147,600 won; and battery maker Samsung SDI Co. was down 0.7 percent.

The local currency was trading at 1,381.00 won against the dollar as of 3:30 p.m., up 3.85 won from the previous session. (Yonhap)