South Korean shares jumped more than 4 percent to their highest close in over five months on Monday, with technology stocks shooting up following a surge in their US peers and banking shares gaining on earnings optimism.
Samsung Electronics Co Ltd surged more than 6 percent and Kookmin Bank jumped 5 percent.
Defying gloomy economic data, high oil prices and a security alert, the benchmark Korea Composite Price Index (KOSPI) closed up 4.12 percent at 880.84, its highest finish since April 28.
Gains were across the board, with advancing stocks leading decliners by almost four to one amid moderate trading. "The gains in US stock markets are leading to gains across the board," said Oh Hyun-seok, an analyst at Samsung Securities. "Oil prices and al Qaeda are not good news, but the market is choosing to ignore the news and focus on the good."
Semiconductor shares, including market leader Samsung Electronics, were among the biggest gainers, tracking their US peers. The Philadelphia Stock Exchange's semiconductor index surged 4.61 percent on Friday after a rating upgrade of chip equipment makers by US investment house J.P. Morgan.
Samsung surged 6.29 percent to 490,000 won, its highest close since June 8. Hynix Semiconductor Inc, the world's fourth-biggest memory-chip maker last year, jumped 4.5 percent to 11,600 won.
Banking shares advanced after the head of Kookmin Bank, South Korea's largest lender, said on Friday he expected third-quarter net profit to exceed the profit posted in the first half of the year.
Shares in Kookmin gained 5.08 percent to 39,300 won, while Shinhan Financial Group, South Korea's second-largest financial services firm, surged 7.32 percent to 22,000 won.
The wholesale and retail sales sector index surged 5.59 percent, after shares in key member SK Networks, the trading arm of the SK Group, jumped by their daily limit of 15 percent to 11,800 won. That followed a 27 percent drop in the oil and chemicals firm its past two trading sessions.
Hyundai Department Store, the second-largest after unlisted Lotte Shipping Co, jumped 8.13 percent to 35,900 won. Investors thought a recent decline in share prices had been overdone, analysts said.
Shipbuilders posted strong gains amid rising ship prices and increasing orders. Hyundai Heavy Industries Co, the world's largest, rose 4.36 percent to 33,500 won.
Shares in key auto makers also posted gains, with Hyundai Motor Co gaining 5.72 percent to 59,100 won after reporting growth in September sales on Friday.
The December KOSPI 200 futures index rose 4.75 points to 114.40 and the underlying KOSPI 200 spot index added 4.60 points to 114.02.
The over-the-counter Kosdaq rose 1.64 percent to finish at 371.66.