South Korean stocks rose 0.27 percent on Monday as investor sentiment was boosted by growing expectations over a global recovery and corporate earnings forecasts, analysts said. The local currency gained ground against the U.S. dollar.

The Korea Composite Stock Price Index climbed 4.9 points to finish at 1,817.79. Trading volume was light at 263.5 million shares worth 3.2 trillion won ($2.8 billion), with losers slightly outpacing gainers 408 to 407.

“Investors are relieved by China’s not-so-bad economic data released late last week,” said Han Beom-ho, an analyst from Shinhan Investment Corp.

China reported on Friday that its economic growth fell to a three-year low of 7.6 percent in the second quarter.

“The figure was bad, but it met market expectations. Investors believe that the world’s second-largest economy hit the bottom and is expected to turn around during the second half of the year,” he said.

After the announcement of China’s growth rate, the South Korean market rebounded nearly 30 points on the back of optimism about a further rebound.

“And Premier Wen Jiabao Monday pledged to take further stimulus actions to help struggling sectors. This help reduces the so-called ‘China risk’ in the market,” added Han.

The analyst also noted that investors will take a wait-and-see stance before U.S. companies such as Intel and IBM announce their second-quarter earnings later this week.

Foreigners offloaded a net 91.6 billion won worth of local shares for a six-straight session.

Shares closed mixed. Market bellwether Samsung Electronics advanced 1.14 percent to 1,152,000 won, while its smaller rival SK Hynix lost 2.68 percent to 21,800 won.

Leading steelmaker POSCO gained 0.42 percent to 361,000 won and Korea Zinc, the world’s second-largest zinc smelter, rose 1.64 percent to 371,000 won.

Carmakers finished higher, with market leader Hyundai Motor adding 1.11 percent to 228,500 won and its smaller affiliate Kia Motors climbing 0.27 percent to finish at 74,300 won.

Banks ended bearish. Woori Finance Holdings, the biggest financial group by asset, dropped 0.88 percent to 11,300 won and No. 2 Hana Financial Group fell 1.17 percent to 33,900 won.

World’s biggest shipyard Hyundai Heavy Industries tumbled 2.47 percent to 236,500 won.

The local currency ended at 1,147 won against the greenback, up 3.3 won from Friday’s close, on the back of the KOSPI’s rise, dealers said. (Yonhap News)