Seoul shares expected to trade higher despite budget cuts in U.S.

South Korean stocks are expected to trade higher next week despite automatic spending cuts in the United States, analysts said Saturday.

The benchmark Korea Composite Stock Price Index (KOSPI) closed up 0.1 percent to 2,026.49 on Friday from the previous week.

The KOSPI rebounded later this week as Ben Bernanke, the chairman of the U.S. Federal Reserve, made comments that suggested a continuation of the monetary easing policy.