South Korean shares gained Tuesday on expectations that China's central bank may lower interest rates further.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 10. 99 points, or 0.54 percent, to 2,041.03 at the close. Trading volume stood at 547.25 million shares worth 5.29 trillion won (4. 77 billion U.S. dollars).
Expectations spread among some investors that the People's Bank of China (PBOC) may cut interest rates further after the central bank decided to ease regulations on home-backed loans.
Zhou Xiaochuan said during the 2015 Boao Forum for Asia (BFA), which ended on Monday, that it needs to watch whether the Chinese economy might fall into deflation, boosting the rate cut expectations further.
In addition to expectations for monetary stimulus in China, the launch of quantitative easing in Europe and the expectations for the U.S. Federal Reserve's rate increase coming after June helped stimulate market sentiment.
Foreigners raised stock holdings by 41 billion won, but institutional and retail investors sold shares worth 9 billion won and 25 billion won, respectively.
Large-cap shares ended mixed. Market bellwether Samsung Electronics added 0.7 percent, and top automaker Hyundai Motor gained 1.5 percent. Memory chip giant SK Hynix rose 0.2 percent, but the No.1 mobile operator SK Telecom declined 0.5 percent. Naver, the most-used search engine, slid 0.3 percent, and Cheil Industries lost 1 percent.
The South Korean currency finished at 1,109.5 won against the greenback, down 4.6 won from Monday's close.
