Major Seoul Bourse Closes Higher

South Korean stocks closed higher Monday as investors snapped up financial shares and automakers on improved sentiment from Wall Street gains and falling oil prices.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 13.47 points, or 0.77 percent, to 1,760.82. Volume was moderate at 368.1 million shares worth 4.52 trillion won ($4.36 billion). Gainers led losers 420 to 378.

"The key index pared earlier gains in late trading mainly because of sell-offs by institutional and foreign investors," Yonhap News quoted Park Suk-hyun, an analyst at Eugene Investment & Securities, as saying. "Investors also seemed to be cautious ahead of a second-quarter earnings report by Lehman Brothers Holdings."

Financial issues gained momentum with No. 2 financial services firm Shinhan Financial Group adding 4.22 percent to 48,200 won.

Automakers extended gains on a fall in oil prices and expectations for stronger second-quarter earnings. Top carmaker Hyundai Motor rose 1.76 percent to 81,000 won and its affiliate Kia Motors advanced 3.36 percent to 12,300 won.

Industry leader Samsung Electronics rose 2.52 percent to 691,000 won and chipmaker Hynix Semiconductor gained 0.17 percent to 29,400 won.

The tech-savvy Kosdaq market lost ground as Internet shares fell across the board and individual dumped shares. The Kosdaq index retreated 1.13 points, or 0.18 percent, to 621.02.

Meanwhile, the Korean won closed at 1,038.30 won against the dollar, up 2.70 won from Friday's close, after a Finance Ministry official said the government is hoping the won moves in a direction that will help curb inflation.