SEOUL: South Korean shares rose on Friday on hopes that the won currency was stabilising and after the new government pledged various stimulus measures including an extra budget.
The Korea Composite Stock Price Index (KOSPI) rose 0.7 percent to 2,006.53 points as of 0303 GMT.
"Investors are buying as pressure from currency moves eased while upcoming stimulus policies improve views about South Korean stocks," said Kim Hyoung-ryoul, a strategist at Kyobo Securities.
However, he said it was unclear whether the uptrend could be sustained into coming sessions, depending on future currency moves and foreign investors' stance.
South Korea's new government sharply cut this year's economic growth forecast on Thursday and pledged stimulus measures including an extra budget over the coming weeks to pull the economy out of a slump.
The South Korean won was quoted at 1,113.4 against the dollar as of 0302 GMT.
It has lost nearly 4 percent against the dollar so far this year but its descent has been showing signs of slowing of late. Traders say it may now be in a "sweet spot", encouraging foreign investors to buy into local shares to take advantage of potential foreign exchange gains.
Large-caps were mixed, but heavyweight Samsung Electronics led gains by rising 1.2 percent near mid-session, extending gains from the previous session. Hyundai Motor was also up 0.7 percent.
Shares in local brokerages rose as sentiment was bolstered by the benchmark index topping the 2,000 level, with Woori Investment & Securities up 3.5 percent while Samsung Securities rose 2 percent.
Foreign and local institutional investors purchased a net 158.9 billion Korean won worth of KOSPI shares near mid-session, lifting the index.
Advancing shares outnumbered decliners 494 to 285.
The KOSPI 200 benchmark of core stocks was up 0.7 percent, while the junior KOSDAQ edged 0.3 percent higher.
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