South Korean stocks surged 1.06 percent on Thursday as investors hunted for bargains amid a brighter outlook of their earnings. The local currency fell against the U.S. dollar.
 

The benchmark Korea Composite Stock Price Index rose 21.26 points to 2,030.68. Trading volume was moderate at 445.9 million shares worth 4.35 trillion won ($3.81 billion), with gainers outpacing losers 518 to 298.
  

Analysts said Seoul shares gained ground as investors loaded up on undervalued blue chips amid eased uncertainty over a U.S. rate hike.
  

"Large-cap shares are expected to continue to trade stronger," said Ahn Hyuk, an analyst at Korea Investment & Securities Co. "Blue-chip shares have been mostly losing ground for more than a year. Their earnings outlook, meanwhile, has also improved."
  

Foreigners scooped up a net 66.7 billion won, while individuals offloaded a net 292.2 billion won. Institutions bought a net 158.8 billion won.
  

LG advanced 1.21 percent to 75,000 won amid the improved outlook over its technology affiliates.
  

SK, the holding firm of South Korea's No. 3 conglomerate, spiked 2.87 percent to 269,000 won after it decided to take over OCI Materials as part of an effort to bolster the semiconductor material business.
  

SK hynix also jumped 2.66 percent to 32,750 won.
  

Carmakers were also winners, with Hyundai Motor gaining 0.66 percent to 152,500 won and Hyundai Mobis rising 1.62 percent to 251,000 won. Kia Motors advanced 0.75 percent to 53,900 won.
  

Shipbuilders closed higher, with Hyundai Heavy Industries leaping 2.65 percent to 93,000 won and Samsung Heavy Industries surging 3.43 percent to 12,050 won. Daewoo Shipbuilding & Marine Engineering shot up 5.56 percent to 6,460 won.
  

The local currency ended at 1,147.30 won against the greenback, down 3.9 won from Wednesday's close.
  

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys added 0.9 basis point to 1.778 percent and the return on the benchmark five-year government bonds lost 0.3 basis point to 1.956 percent. (Yonhap)