Seoul - Shares rebounded Wednesday on the Seoul stock exchange in reaction to US government plans to bail out the troubled insurance giant American International Group Inc (AIG).

The benchmark Kospi index surged 37.51 points, or 2.7 per cent, to close at 1,425.26. The rise came a day after the Kospi fell 6.1 per cent on the collapse of the US investment bank Lehman Brothers Holdings Inc and trouble at AIG, both linked to the plunging subprime US mortgage market.

Advancing issues outnumbered losers 715 to 132 Wednesday on the Kospi.

The main index of the technology-heavy Kosdaq market rose 15.64 points, or 3.64 per cent, to 444.93.

The US dollar was quoted at 1,116 won, down from 1,160 won Tuesday. dpa