South Korean stocks closed 1.94 percent higher Friday due mainly to abated woes over the United States' policy uncertainties, analysts said. The local currency gained against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) added 38.08 points to close at 2,005.64. Trading volume was low at 259.7 million shares worth 3.62 trillion won (US$3.39 billion) with gainers outpacing losers 536 to 278.
Analysts said Seoul shares gathered ground as investors' sentiment was boosted by the U.S. Federal Reserve chief candidate's remarks suggesting the stimulus tapering will not happen soon.
Investors had been sitting on the sidelines due mainly to uncertainties surrounding U.S. economic policies, including concerns on a possible quantitative easing tapering by the Federal Reserve.
Earlier this week, Janet Yellen, the successor to current Fed chairman Ben Bernanke, said in a statement that the Fed still has more work to do to fuel the slowly recovering economy.
Investors on Wall Street took the remarks as an indication that the U.S. central bank won't start the stimulus cut in December as widely speculated.
"Yellen gave investors a clear policy guideline that the central bank will keep quantitative easing for the time being, and a tapering will not happen this year," said Kim Joo-hyung, a researcher at Tongyang Securities Co.
Overseas investors bought a net 47.1 billion won and institutions also scooped up a net 197 billion won. Individuals, on the other hand, shed 242 billion won.
Tech shares closed higher, with market behemoth Samsung Electronics adding 2.67 percent to 1,462,000 won and top chipmaker SK hynix advancing 4.33 percent to 33,700 won. LG Electronics gained 1.07 percent to 66,100 won.
Daewoo Shipbuilding & Marine Engineering closed 8.2 percent higher to reach 36,950 won on the back of an improved outlook over its earnings.
Carmakers also traded higher, with No. 1 Hyundai Motor rising 2.47 percent and its smaller affiliate Kia Motors climbing 1.32 percent. Top auto parts maker Hyundai Mobis moved up 1.71 percent.
The local currency ended at 1,063.40 won against the greenback, up 4.50 won from Thursday's close, dealers said. (Yonhap News)
