Seoul shares ended 5.80 percent higher on Friday, above the 1,000 benchmark level and rewinding an earlier 3.6 percent loss as shipbuilders and carmakers rallied after their latest steep drops. Speculation of a Chinese interest rate cut at the weekend helped lift regional Asian markets with Japanese, Taiwanese and Hong Kong shares all showing solid gains by the Seoul close.
The Korea Composite Stock Price Index finished up 55.04 points at 1,003.73 after hitting a low of 914.02 points, finishing in positive territory after 8 consecutive losing sessions. Foreign investors turned net buyers for the first time in 9 sessions, picking up a net 57 billion won ($37.46 million). Domestic institutions were buyers of a net 10 billion won.
The index is still down 7.8 percent on the week, but 12.4 percent above the October 27 low of 892.16 points. Auto makers and shipbuilders led the gains. Hyundai Motor, the world's No 5 carmaker, rose 14.75 percent and Kia Motors, its smaller affiliate, gained 10.52 percent.
Shipbuilders saw Hyundai Heavy Industries up 14.8 percent and Daewoo Shipbuilding & Marine Engineering 14.79 percent higher. LG Electronics, the world's No 4 maker of cellphones, advanced 11.0 percent and Hynix Semiconductor went up 4.23 percent.
Shares in Lotte Chilsung ended 3.03 percent higher after rising more than 10 percent earlier on speculation the country's leading maker of soft drinks wanted to take over No 2 Korean beer maker Oriental Brewery from Belgium's InBev. Lotte Chilsung denied rumours in regulatory filings. SK Telecom, South Korea's top mobile phone operator, ended 0.24 percent lower and KTF, the country's No 2, fell 3.11 percent.