Roundup: S. Korean shares close higher despite woes over China's tightening monetary policy

SEOUL, Jan. 21 (Xinhua) -- South Korean shares on Thursday closed higher, reversing the downward move in the morning triggered by reports on China's tightening monetary policies, Seoul's main bourse said Thursday.

According to the Korea Exchange (KRX), South Korea's benchmark index, KOSPI, closed up 63 points, or 0.45 percent, hitting 1,722. 01 points.

The KOSPI, recovering the 1,720 point-level, stood at the highest level since Sept. 22, 2009, the KRX said.

Although the main stock market started off weaker due to jitters in overseas markets amid woes over China's possible withdrawal of accommodative monetary policies, it bounced back in the afternoon on the back of massive buying of foreigners and individual investors, according to the bourse's explanation.

While institutional investors most remained in a selling position, the nation's biggest institution, the National Pension Services (NPS), continued with its four-session-straight buying stance.

Tech shares and shipbuilders stayed strong, with market leader Samsung Electronics closing up 1.68 percent at a record-high of 848,000 won (745.8 U.S. dollars) and Hynix Semiconductor rising 1. 57 percent to 25,800 won (22.7 U.S. dollars).

The junior bourse, KOSDAQ, moved along with the KOSPI, falling in the morning and reversing the drop in the afternoon to close at 549.03 points.

The derivatives markets also made an upturn thanks to foreign buying, with the KOSPI 200 Futures market climbing 2.10 points, or 0.94 percent, to close at 226.55 points.

The local currency ended at 1,137.10 won against the U.S. dollar, up 1.10 won from Wednesday's close, dealers said.

The won's upturn came despite of downward pressures by the strengthening U.S. dollar, dealers said.

Bond yields have moved up, with the yield on the benchmark five- year Treasury note hiking 0.01 percentage point to 4.81 percent, referring to a downward move in bond prices.

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