South Korean stocks close higher over hopes for rate cuts

The stock market will reopen next Friday after the Lunar New Year's holiday, which runs through Thursday.

The benchmark Korea Composite Stock Price Index (KOSPI) added 21.31 points, or 0.85 per cent, to close at 2,536.8, rebounding from a 1.24 per cent drop the previous day, Yonhap news agency reported.

Trade volume was moderate at 576.9 million shares worth 9.83 trillion won ($6.87 billion), with winners outnumbering losers 542 to 321.

Foreigners purchased a net 203.8 billion won and institutions scooped up a net 70.6 billion won. Individual investors sold a net 380.1 billion won.

Overnight, US stocks rallied after Trump called for cuts in interest rates and oil prices during his video message for the World Economic Forum in Davos, Switzerland.

In Seoul, semiconductor, steel, bio and entertainment stocks led the daily gains.

Chip giant Samsung Electronics stayed flat at 53,700 won and its rival SK hynix climbed 0.68 per cent to 221,000 won.

Steel giant POSCO Holdings advanced 0.77 per cent to 261,500 won, while Hyundai Steel went up 2.63 per cent to 23,450 won.

Bio tech giant Samsung Biologics vaulted 3.23 per cent to 1,087,000 won, with leading pharmaceutical firm Celltrion adding 0.61 per cent to 180,200 won.

Entertainment giant CJ ENM increased 0.57 per cent to 52,900 won, and Hybe, a record label behind global superstar BTS, climbed 2.07 per cent to 221,500 won.

Top carmaker Hyundai Motor lost 1.91 per cent to 205,000 won, while its sister Kia declined 0.97 per cent to 101,700 won.

The local currency was trading at 1,431.3 won against the US dollar at 3:30 p.m., up 6 won from the previous session.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys fell 0.8 basis point to 2.570 per cent, and the return on the benchmark five-year government bonds gained 0.9 basis point to end at 2.704 per cent.