South Korean stocks closed up Tuesday ahead of the release of the United States' key inflation data. The local currency gained against the US dollar.

The benchmark Korea Composite Stock Price Index added 12.94 points, or 0.53 percent, to close at 2,465.64, as investors staged a comeback from their losing streak in the last three sessions.

Trading volume was a bit slim at 343.4 million shares worth 6.66 trillion won ($5.24 billion), with gainers outpacing losers 490 to 374.

Institutions and foreign investors combined bought a net 364.58 billion won worth of shares, while retail investors sold off a net 386.9 billion won.

Traders are ready for the US' Consumer Price Index report for January, set to be released Tuesday, which will serve as an important indicator of how high US interest rates will move this year.

Overnight, US stocks rallied after a newly released New York Federal Reserve consumer survey, which showed that Americans have lowered their expectations for future income growth, suggested that consumer price data could be in better shape than previously feared.

In Seoul, most top-cap shares finished higher.

Market bellwether Samsung Electronics gained 0.48 percent to close at 63,200 won, and chip giant SK hynix rose 2.87 percent to 93,400 won. LG Electronics jumped 5.69 percent to 113,300 won on rosy expectations of its electric vehicle component business.

Leading battery maker LG Energy Solution moved up 0.57 percent to 525,000 won, and Samsung SDI climbed 2.21 percent to 739,000 won.

Top automaker Hyundai Motor gained 1.22 percent to 173,700 won, and its affiliate Kia increased 0.41 percent to 73,500 won.

Internet giant Naver inched up 0.45 percent to 224,000 won, and Kakao, the operator of the popular mobile messenger KakaoTalk, added 1.09 percent to 65,000 won.

Among losers, Samsung Biologics inched down 0.25 percent to 805,000 won, and KB Financial lost 4.16 percent to 53,000 won.

The local currency ended at 1,269.4 won against the US dollar, up 7.9 won from the previous session's close. (Yonhap)