"Chinese economic data showing the economy continues to grow robustly helped boost investor sentiment. The steadying won, which is declining a bit today, is lifting auto and technology exporters," said Lee Jin-woo, a market analyst at Mirae Asset Securities.
"The technology sector's outlook for this year in particular is strong," Lee added. Hynix Semiconductor gained 2.17 percent to 25,950 won after the world's No 2 memory chip maker posted a higher than expected quarterly operating profit as chip prices rallied and demand rose in an ongoing sector recovery.
"Markets have been expecting bullish figures from Hynix as DRAM chip pricing has been good through the fourth quarter...it's hard to say to what level share prices will rise to, but I'd say broader share movements will be solid for some time," said Jeong Eui-suk, a research director at Shinhan Investment Corporation.
Shares in LG Display also gained 4.62 percent to 41,900 won after the world's No 2 LCD panel maker reported late on Wednesday a smaller then expected quarterly operating profit, but expected a strong 2010 on robust Chinese demand. Citi raised its target price on LG Display by 4 percent to 50,000 won and also lifted its fiscal 2010 earnings estimates on the world's No 2 LCD panel maker. "LG Display is well-positioned to reap the benefit of the upcoming upturn with its cost competitiveness and superior customer mix," Citi said in a report dated January 20.
Auto issues rose after their recent falls, with shares in Hyundai Motor, South Korea's top automaker, ending up 5.31 percent and Kia Motors advancing 3.74 percent. But retail issues retreated, with Lotte Shopping Co Ltd falling 3.63 percent and Shinsegae Co Ltd shedding 1.54 percent. Institutions were sellers of a net 123.8 billion won worth of stocks, and foreign investors picked up a net 136.2 billion won.
Retail investors sold a net 25.9 billion won worth of stocks. Advancers outnumbered decliners 398 to 377 to 398 with 85 issues ending flat. Trading volume stood at 536.8 million shares worth 5.66 trillion won, compared with 689 million shares worth 7.2 trillion won in the previous session. The KOSPI 200 March futures index ended up 2.10 points at 226.55, and the KOSPI 200 spot index rose 1.33 points to 226.16. The junior Kosdaq market advanced 0.9 percent to close at 549.03.