SEOUL: Seoul shares rose to a fresh six-month intraday high on Monday, closely tracking gains in Asian peers with sentiment buoyed by China's policy easing steps and hopes that Greece would finally clinch a long-awaited rescue deal.
Growth-related shares rallied after China's central bank cut the ratio of cash reserves banks must hold on Saturday in a bid to stimulate growth in the world's second-biggest economy.
POSCO, the world's third-largest steelmaker, saw its shares climb 1.95 percent while Hyundai Heavy Industries , the world's largest shipbuilder, gained 1.56 percent.
"Much of the credit boots from China's reserve ratio cut is expected to be poured into new infrastructure and capital investments, lifting prices and demand for raw materials," said Ham Sung-sik, an analyst at Daishin Securities.
The Korea Composite Stock Price Index (KOSPI) was up 0.47 percent at 2,033.04 points as of 0135 GMT, paring gains after climbing 1.37 percent to a fresh six-month intra-day high of 2,047.43 near the opening bell.
Offshore investors were buyers of a net 128.6 billion won ($114.3 million) worth of shares, offsetting institutions and retail investors who sold a net 60.2 billion won and 77.3 billion won worth respectively.
Samsung Electronics, fresh off of posting an all-time closing high on Friday, touched a new intra-day record peak of 1,194,000 won before retreating to 1,180,000 won, a 0.43 percent gain.
Refiners and petrochemical shares lent support, lifted by the prospects of higher margins as Brent crude futures peaked to an eight-month high above $120 a barrel after Iran halted oil exports to Britain and France.
SK Innovation, the parent of South Korea's largest crude oil refiner, advanced 1.07 percent while LG Chem , the country's leading chemical maker, climbed 3.28 percent.
Defence-related shares soared after North Korea threatened retaliation against a U.S-South Korean naval exercise scheduled to start on Monday, with ammunition manufacturer Poongsan Corp up 4.56 percent while military engineering contractor Speco Ltd jumped 8.79 percent.
The KOSPI has gained more than 11 percent this year on the back of a liquidity-fuelled rally from the European Central Bank's cheap loan injections and a string of positive economic data from the United States.
Its 50-day moving average is now at 1,906.76 points, closing the gap with its 200-day moving average of 1,941.00.
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