Seoul Shares Edge Up on US Stimulus Plans

South Korean stocks closed 0.07 percent higher Tuesday as U.S. economic stimulus plans lifted investor sentiment, outweighing profit-taking. The local currency rose against the U.S. dollar.

After volatile trading, the benchmark Korea Composite Stock Price Index (KOSPI) climbed 0.79 point to 1,105.84. Volume was moderate at 478.6 million shares worth 5.94 trillion won ($4.09 billion), but losers outnumbered gainers 408 to 403.

"Although the market underwent some volatility, given the previous session's steep gains, the local bourse maintained solid movement," Lee Sun-yup, an analyst at Goodmorning Shinhan Securities, was quoted as saying by Yonhap News. "Hopes for saving the ailing U.S. auto industry and a set of economic stimulus plans helped lift investor sentiment."

Foreign investors snapped up a net 200.3 billion won worth of local stocks on the Seoul bourse.

Top carmaker Hyundai Motor advanced 1.29 percent to 43,100 won on rising expectations of a bailout plan for the teetering U.S. auto industry. But its affiliate Kia Motors declined 1.84 percent to 6,920 won.

Top steel maker POSCO gained 3.81 percent to 381,000 won and market leader Samsung Electronics added 1.19 percent to 469,500 won.

Chip giant Hynix Semiconductor, however, fell 5.26 percent to 7,390 won after U.S.-based investment fund Alliance Bernstein L.P. sold a 4.95 percent stake in the chipmaker.

The local currency closed at 1,447 won to the dollar, up 1.3 won from Monday's close, as offshore investors snapped up local stocks.