S. Korean shares close higher on European banks' stress tests

South Korean shares on Monday shot up on positive results on European banks' stress tests, local analysts said.

The benchmark Korea Composite Stock Price Index (KOSPI) jumped 11.01 points, or 0.63 percent, to close at 1,769.07, according to the bourse operator Korea Exchange (KRX).

The index continued to rise as investor sentiment was buoyed by test results from Europe's banks, thanks to stronger foreign buying, analysts said.

Foreigners stayed as net buyers, together with institutions, but retail investors stood as net sellers.

The junior bourse KOSDAQ ended higher as well, up 4.45 points, or 0.92 percent, to close at 488.14.

The derivatives closed up, however, with the KOSPI 200 Futures market climbing 1.37 points, or 0.60 percent, to 230.87, according to the bourse operator.

Meanwhile, the local currency gained strength against one U.S. dollar, up 7.70 won to end trading at 1,191.10 won.

Bond prices continued to close lower, with the yield on three- year Treasury notes rising 0.03 percentage point to 3.88 percent.

Source: Xinhua