SEOUL: South Korean shares and the won edged up on Monday as geopolitical tensions eased somewhat, with riskier assets getting a boost on expectations of policy changes to shore up the local economy.
The Korea Composite Stock Price Index (KOSPI) was up 0.38 percent at 2,027.14 points as of 0153 GMT versus an onshore close of 2,019.42 on Friday - its best week since May. The index touched the 2,030 mark earlier in the day for the first time this year.
"The local stock market is expected to continue its positive performance from last week, riding on high hopes for an economic recovery with support from policymakers," said Jung Seung-Jae, an analyst at Mirae Asset Securities.
Most markets appeared to set side geopolitical concerns for now, with the UN Security Council due to vote Monday on a resolution that would condemn the downing of the Malaysian passenger plane over the Ukraine-Russian border on Friday.
The domestic focus will be on the finance ministry release of revised growth forecasts for this year later this week, and policy announcements to boost the economy under new Finance Minister Choi Kyung-hwan.
Foreign investors bought a net 51 billion won ($49.61 million) worth of KOSPI shares near mid-session, while domestic institutional investors appeared headed for a fifteenth straight day of net selling, offloading a net 31 billion won ($30.16 million).
Korea Aerospace Industries Ltd (KAI) rose 3.4 percent after South Korea's Joint Chief of Staff endorsed a plan after markets closed on Friday for the country to design its own mid-level fighter jet, expected to be built by the country's sole jet builder.
Industrial Bank of Korea (IBK) shares fell 1.1 percent as the South Korean government pressed ahead with its block sale of the bank's shares on Friday. The sale of 28 million IBK shares at a discount of 4.8 percent to Thursday's close raised about $353 million.
LG Chem Ltd slipped 1.7 percent despite announcing on Friday plans to supply batteries for electric vehicles that will generate nearly $2 billion in 2015 sales, mainly hit by a 43.4 decline in second quarter earnings announced on the same day.
The local currency was quoted at 1,028.4 as of 0153 GMT, little changed from Friday's close at 1,029.5.
September futures on three-year treasury bonds ticked down 0.01 percent to 106.96.
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