South Korean stocks closed 0.49 percent higher Wednesday on the back of the government’s envisioned measures to boost its economy, analysts said. The local currency fell against the U.S. dollar.

The benchmark Korea Composite Stock Price Index advanced 9.74 points to 1993.44. Trading volume was moderate at 339 million shares worth 3.76 trillion won ($3.39 billion), with decliners outnumbering gainers 406 to 296.

“The stock market gathered ground as investors’ sentiment got a boost from the government’s envisioned extra budget plan,” said Lee Sang-jae, a researcher at Hyundai Securities Co. “The eased concerns over Cyprus also added to the overall gain.”

South Korea is seeking to draw up an extra budget worth about 10 trillion won as the export-reliant economy was hit hard by the protracted global economic slowdown.

The country has not put forth an extra budget since 2009 when it crafted 28.4 trillion won worth of additional spending in a bid to tide over the global financial crisis.

The South Korean economy expanded 2 percent last year, the slowest gain in three years.

Cyprus was reported to have reached a final deal on Monday to receive a bailout worth 10 billion euros ($12.9 billion) to prevent its banking system from defaulting, which eased concerns over the eurozone.

Foreigners offloaded a net 214 billion won worth of local shares, and retail investors sold a net 155.1 billion won. In contrast, institutions scooped up a net 368 billion won. (Yonhap News)