South Korean shares closed more than one percent higher on Monday, as expectations for strong quarterly earnings boosted shares in Samsung Electronics and other major technology stocks.
Investors also got some encouragement from a sharp market rebound in Taiwan, which ended up over five percent, as post-election political turmoil eased over the weekend.
"Technology shares led the way as hopes for better earnings gained steam with the approach of earnings season," said Lee Su-chang, a fund manager at KEB Commerz Investment Trust Management Co.
"The jump in Taiwan's markets, coupled with continued foreign net buying of local shares, also encouraged investors."
The benchmark Korea Composite Stock Price Index (KOSPI) finished 1.24 percent higher at 874.67 points, stopping just short of a key 20-day moving average of 875.44 points.
Shares in Samsung Electronics, the world's biggest memory chip maker, climbed 1.83 percent to end at 555,000 won and its smaller rival, Hynix Semiconductor Inc, jumped 6.45 percent to 11,550 won.
Samsung Electronics is scheduled to unveil its first-quarter earnings on April 16.
Shares in LG Electronics, the world's fifth-largest mobile phone maker, climbed 3.0 percent to close at 68,700 won.
"Many investors appear to be betting on a positive view for US jobs data due on Friday and first-quarter earnings, particularly those of technology firms," said Lee, adding that the market should breach the 20-day moving average this week.
Shares in Ssangyong Motor Co ended 3.77 percent higher at 8,800 won after falling to 8,230 won earlier in the session, as investors bet on a positive outcome for the sale of the firm.
"The market heard there are other parties still eyeing the opportunity to buy Ssangyong Motor," said a stock trader at Kyobo Securities. "Whether it's Blue Star or some other party, Ssangyong Motor shares are heating up due to the acquisition talk."
Ssangyong Motor shares lost more than six percent late last week after the auto maker's creditors said on Thursday they had failed to agree on a sale price with preferred bidder Blue Star of China.
Meanwhile, banking shares lost steam as foreign investors cashed in profits from a recent rally and rotated their focus to technology stocks.
The country's third-biggest financial firm, Woori Financial Group, lost 3.03 percent to end at 8,960 won and the country's fourth-biggest bank, Hana Bank, fell 1.63 percent to close at 24,150 won.
Trade volume stood at 325.9 million shares valued at 1.96 trillion won. Gainers topped losers by 411 to 298 with 83 stocks unchanged.
The June KOSPI 200 futures index was up 0.95 points at 115.65 and the underlying KOSPI 200 spot index gained 1.46 points to 115.10.
The junior Kosdaq ended up 1.47 percent at 432.30.
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