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South Korea: Shares close up on hopes China will unleash more stimulus; won up

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South Korean shares reversed sharp early declines to close higher on Thursday while the country's currency pared losses against the dollar as the investor appetite for risk assets regained momentum.

[SEOUL] South Korean shares rose modestly on Tuesday on hopes that China will roll out more stimulus measures after reporting its slowest annual economic growth in 25 years.

The Korea Composite Stock Price Index (KOSPI) closed up 0.6 per cent at 1,889.64 points, after falling as much as 0.6 per cent in morning trade.

China is South Korea's largest trading partner.

However, offshore investors were net sellers for a ninth straight day, dumping a net 272.6 billion won (US$226.07 million) worth of shares on the main board, preliminary data showed.

Meanwhile, institutions bought stocks on the dips, supporting the broader market.

The South Korean won was quoted at 1,205.9 to the dollar at the conclusion of onshore trade, up 0.4 per cent compared to Monday's close of 1,210.9.

REUTERS