South Korean stocks closed 0.73 percent higher Thursday, buoyed by the United States Federal Reserve's decision to maintain stimulus measures, analysts said.
The local currency gained against the greenback.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 14.22 points to finish at 1,949.80. Trading volume was moderate at 380.3 million shares worth 4.71 trillion won (US$4.17 billion) with advancers far outpacing decliners 552 to 244.
"The Federal Reserve's decision to maintain its stimulus measures for the time being boosted the investors' sentiment," said Kim Ji-hyung, an analyst at Hanyang Securities Co.
"Better-than-expected economic data from China also added to the local stock market."
The growth rate of China's consumer price index (CPI) in March came to 2.1 percent, falling sharply from the rate of 3.2 percent tallied a month earlier, according to the data released by China' National Bureau of Statistics.
Analysts added South Korea's envisioned economic stimulus measures, which include an extra budget, also sustained investors' sentiment on the stock market.
The size of the extra budget is expected to range between 15 trillion and 20 trillion won, sources said. The government plans to finalize the supplementary budget this month, which would mark the first additional budget in four years.
Foreigners scooped up a net 252.6 billion won. In contrast, retailers offloaded 12.5 billion won and institutional investors sold a net 208.8 billion won.
Top chipmaker SK hynix and leading flat panel manufacturer LG Display increased 3.76 percent and 3.57 percent, respectively, to reach 29,000 won and 31,950 won as foreign investors scooped up their shares.
Sunny Electronics Co. added 10.35 percent to reach 4,905 won, as Ahn Cheol-soo, an independent former software mogul and contender in last year's presidential race, has been the front-runner in Seoul's Nowon C district for the April 24 by-elections.
The former Sunny Electronics CEO worked for South Korea's largest anti-virus software firm AhnLab, which was established by Ahn.
Market behemoth Samsung Electronics advanced 1.25 percent to 1,540,000 won and its smaller rival LG Electronics added 1.88 percent to 86,600 won.
In contrast, Hyundai Merchant Marine, South Korea's second-largest shipping firm, shed 0.39 percent to 12,650 won despite the firm saying Wednesday that it has clinched a 200 billion won deal to transport crude oil for a local refiner.
Construction firms also lost ground, with Hyundai Engineering & Construction decreasing 5.18 percent to 58,600 won and GS Engineering & Construction plunging to its daily permissible limit of 14.98 percent to 42,000 won.
Auto parts maker Hyundai Wia moved down 3.67 percent to reach 144,500 won due to the firm's gloomy earnings outlook. Top aut parts maker Hyundai
Mobis also shed 0.68 percent to 294,000 won.
The local currency ended at 1,129.10 won against the greenback, up 6.60 won from Wednesday's close, due to the eased outlook on North Korean risks, dealers said. (Yonhap News)
