South Korean stocks bounced back from days of losses Thursday as investors got a boost from a jump in China's main index, analysts said. The local currency gained ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index gained 11.6 points, or 0.58 percent, to close at 2,027,81, snapping a four-session losing streak. Trading volume was heavy at 401.8 million shares worth 6.99 trillion won ($6.17 billion), with losers beating gainers 486 to 327.

The Shanghai Composite Index jumped 5.76 percent, or 202.138 points, to close at 3,709.33 Thursday, ending a two-session losing streak, as the Chinese authorities released a set of market-stabilizing measures.

Also, the South Korean government announced a package of measures to help boost its exports and spur investment in tourism, venture and construction sectors.

"Recently the index has suffered massive losses due to the Greek crisis and a Chinese rout. Investors hunted bargains as they thought the market was overly undervalued," said Jeong Dong-hyu, an analyst at Shinyoung Securities Co.

"They heard somewhat optimistic news about negotiations between Greece and its creditors, and the Chinese government released a set of measures to stop the freefalling stock market."

Institutional investors remained as net buyers for two straight sessions, scooping up a net 231.6 billion won worth of local shares, while foreign investors dumped a net 349.1 billion won.

"Still, concerns about poor second-quarter earnings are still lingering among investors. The index can fall into negative territory anytime," said the analyst.

Market bellwether Samsung Electronics jumped 2.1 percent to 1,265,000 won and LG Display, a flat panel supplier, rose 2.0 percent to 25,550 won.

Pharmaceutical shares finished bullish, with Hanmi Pharm soaring 13.02 percent to 534,000 won and Green Cross Corp. adding 3.69 percent to 239,000 won.

Polysilicon maker OCI vaulted 7.69 percent to 119,000 won on hopes that the world solar industry has been on a clear recovery track.

State-run Korea Electric Power Corp. rose 1.69 percent to 48,050 won to retain the No. 2 spot in market capitalization.

Korean Air Lines, the country's flagship air carrier, tumbled 5.48 percent to 39,700 won after failing to sell stakes via a block deal.

The local currency ended at 1,133.9 won versus the U.S. greenback, up 2.8 won from Wednesday's close, on the back of the KOSPI increase.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys fell 0.5 basis point to 1.802 percent and the return on the benchmark five-year government bonds added 1.2 basis points to 2.085 percent. (Yonhap)