South Korean stocks closed almost flat Tuesday, as investors took a breather following previous rallies amid signs of growth in China and Europe, analysts said.

The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shed 2.02 points, or 0.11 percent, to finish at 1,885.84. Trading volume was moderate at 403 million shares worth 3.71 trillion won (US$3.33 billion) with decliners outnumbering gainers 535 to 256.

Analysts said the KOSPI's marginal drop came largely from a one-off technical fall triggered by a program sell-off worth 153.5 billion won, and therefore the index will likely move upwards in the coming days.

"The manufacturing data in the eurozone and China both showed the economies have expanded, which will fuel the local market until the U.S. Federal Reserve's next policy meeting in September," said Kim Ji-hyun, an analyst at Tong Yang Securities Co.

Foreigners scooped up a net 106 billion won on the main bourse, extending its buying binge for a third consecutive session in a sign of easing fear for a sudden financial jolt in the Asian markets.

Large caps closed mixed. Tech heavyweight Samsung Electronics finished up 0.31 percent to 1,304,000 won, while auto parts maker Hyundai Mobis slid 0.37 percent to 270,500 won.

Shares of local builders gathered ground on growing expectations for a government stimulus to boost the ailing property sector. Industry leader Hyundai Engineering & Construction rose 1.82 percent to 56,000 won.

The local currency ended at 1,116.30 won against the greenback, down 3.6 won from Monday's close, as demand for safer assets increased on geopolitical risks in Syria, dealers said. (Yonhap news)