South Korean shares ended 3.7 percent higher on Monday, as a dip in oil prices and robust US jobs data sparked a buying spree in large cap shares such as market leader Samsung Electronics Co Ltd.
Gains of more than two percent in regional neighbours such as Japan and Taiwan also helped support the rally.
"A stronger finish on Wall Street, fueled by strong employment data, made investors focus on the strengthening US economy," said Lee Woo-hyun, an analyst at Kyobo Securities.
The benchmark Korea Composite Stock Price Index (KOSPI) ended up 3.68 percent at 809.45 points.
"Oil prices remained under $40 a barrel and while US jobs data came in stronger than market expectations many players appear to be leaning towards a slower pace of US monetary policy tightening than previously feared," said Rhoo Y.S., an analyst at Hyundai Securities.
The market largely ignored a speech by President Roh Moo-hyun at the opening of a new session of parliament pledging to spped up reforms and tackle corruption as it contained nothing particularly new, said participants.
Large cap shares led the rally, with most of the top 10 stocks gaining more than three percent.
US crude futures for July delivery were quoted at $38.50 a barrel in Asian trading after ending down 2.1 percent at $38.45 in New York trading on Friday.
Japan's Nikkei 225 index ended up 2.8 percent and Taiwan's market rallied 3.68 percent.
Samsung Electronics Co Ltd, the world's biggest memory chip maker, rose 3.12 percent to close at 496,000 won, fueled by a 1.61 percent rise in US chip shares.
Hynix Semiconductor Inc jumped 9.43 percent to 11,600 won after the world's third-biggest memory chip maker said on Friday its board had approved a plan to sell its specialised chip division to an equity fund at Citigroup Inc.
Shares in South Korea's three mobile carriers rose despite a government move to ban them from marketing for new subscribers for up to 40 days for breaching regulations on subsidies. Analysts said the move would cut marketing costs at the firms.
Shares in top mobile firm SK Telecom Co closed 2.86 percent higher at 198,000 won, and second-ranked KTF Corp rose 3.39 percent to end at 19,800 won. LG Telecom closed up 0.43 percent at 3,510 won.
Shares in major auto makers outperformed as investors extended a rally from last week after deciding concerns about a delayed recovery in local demand and a potential decline in exports to China had been overplayed.
Shares in the country's top auto maker, Hyundai Motor Co, jumped 6.43 percent to 45,500 won and its affiliate Kia Motors Corp surged 11.48 percent to end at 10,200 won. Auto parts maker Hyundai Mobis Co ended up 8.52 percent at 47,750 won.
Foreigners purchased a net 50.8 billion won ($43.68 million), and institutional investors also bought a net 282.5 billion won. Retail investors sold a net 336.2 billion won worth of shares.
The June KOSPI 200 futures index ended up 4.05 points at 104.90 and the underlying KOSPI 200 spot index was up 4.07 points at 105.02.
The junior Kosdaq ended up 1.69 percent at 404.57 points.
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