South Korean stocks finished up 0.4 percent Friday as investors scooped up large-cap shares on signs of progress in the U.S. fiscal cliff negotiations, analysts said. The local currency gained ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index gained 7.83 points to 1,957.45. Trading volume was moderate at 405.9 million shares worth 4.26 trillion won ($3.94 billion) with gainers outnumbering losers 409 to 391.

“The U.S. policy makers showed somewhat strong determination to avoid the fiscal cliff last night,” said Kim Ju-yong, an analyst at Bookook Securities Co. “Hopes are high that Democrats and Republicans will reach an agreement before Christmas.”

He also said careful optimism spreads among investors as U.S. budget talks made progress and U.S. job data showed gradual improvement, although there’s nothing dramatic in the market situation.

Foreigners snapped up a net 195.3 billion won worth of local shares to extend the buying streak into a seventh consecutive session.

Most shares gained ground across the board, boosted by techs, steelmakers and shipbuilders.

Market bellwether Samsung Electronics jumped 1.79 percent to a record 1,480,000 won, breaking the previous high of 1,455,500 won set on Wednesday. No. 2 memory chipmaker SK hynix soared 4.23 percent to 25,900 won and LG Electronics climbed 0.68 percent to 74,500 won.

Steelmakers were also bullish, with industry leader POSCO gaining 1.96 percent to 338,000 won and Dongkuk Steel Mill rising 2.71 percent to 13,250 won. (Yonhap News)