South Korean stocks closed at a new high Monday as institutions snapped up
transportation equipment, construction and other blue chips, analysts said. The South Korean won climbed against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.95 points, or 0.99 percent, to 1,628.2. Volume was heavy at 501.6 million shares worth 5.08 trillion won (US$5.46 billion), with winners outnumbering losers 467 to 297.

"After a weak morning session, stocks were later buoyed in tandem with Chinese market movements," said Park Seok-hyun, an analyst at Kyobo Securities.

China's benchmark Shanghai Composite Index managed to gain ground during the session after opening 3.18 percent lower, in response to the country's central bank raising interest rates Friday to cool an investment boom.

Transportation equipment makers, such as shipbuilders and carmakers, chalked up strong gains. World's No. 1 shipyard Hyundai Heavy Industries Co. surged 7.64 percent to 303,000 won and leading automaker Hyundai Motor climbed 4.38 percent to 66,800 won.

Construction firms also gained ground. Industry leader Daewoo Engineering & Construction advanced 2.5 percent to 26,650 won.

Top steelmaker POSCO increased by 1.72 percent to 415,000 won, along with rest of the industry, as investors bet that China's recent economic buildup would raise steel demand for facilities expansions.

Tech exporters, however, ended in negative terrain. Market leader Samsung Electronics slid 0.36 percent to 552,000 won.

The local currency ended at 930.2 won to the U.S. dollar, up 3.9 won from Friday's close, as offshore investors unloaded the greenback, dealers said.

Bond prices, which move inversely to yields, closed flat. The return on benchmark three-year Treasuries held steady at 5.15 percent, and the yield on five-year government bonds ended unchanged at 5.19 percent.