Seoul stocks up for 2nd day on eased Fed uncertainties

South Korean stocks advanced for a second straight session Thursday, as the US Federal Reserve's January minutes largely remained within the market expectations. The Korean won rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) increased 14.41 points, or 0.53 percent, to close at 2,744.09 points.

Trading volume was moderate at about 602 million shares worth some 11.7 trillion won ($9.8 billion), with gainers outnumbering losers 464 to 372.

Foreigners bought a net 649 billion won and institutions purchased 434 billion won, while retail investors offloaded 1.1 trillion won.

After a solid start, the key stock index traded bullish amid foreign and institutional buying.

According to the Fed's minutes, the officials reiterated their stance that they would soon start raising the key interest rates to rein in price pressure. The January document did not include the impacts from the Ukraine risk.

"Investors seem to be relieved that a large part of the FOMC minutes has already been priced in the stock prices," Mirae Asset Securities analyst Park Gwang-nam said.

Stocks briefly plunged in the wake of the US-Russian military tensions over Ukraine, which fanned volatility in oil prices, one of the key drivers of the local stock prices.

But the KOSPI rebounded in the afternoon amid hopes of a quick economic recovery, led by the country's highest monthly jump in January jobs data in 22 years.

Most large caps closed higher in Seoul, with market bellwether Samsung Electronics up 0.27 percent to 75,000 won and No. 2 chipmaker SK hynix increasing 1.92 percent to 133,000 won.

Bio giant Samsung Biologics added 0.4 percent to 760,000 won, and leading carmaker Hyundai Motor climbed 0.82 percent to 183,500 won. Battery maker Samsung SDI jumped 3.15 percent to 557,000 won.

The local currency closed at 1,197.1 won against the US dollar, up 0.5 won from the previous session's close. (Yonhap)