South Korean stocks soared on Friday, extending their gains for a third consecutive session on overnight gains on Wall Street and growing expectations of stimulus in the eurozone, analysts said. The South Korean won rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 20.05 points, or 1.05 percent, to 1,924.70. Trading volume was moderate at 305 million shares worth 4.25 trillion won (US$3.89 billion), with gainers beating losers 530 to 283.

"Samsung's fourth-quarter earnings were positive, and eased concerns over a drop in oil prices may help boost buying bids for large-cap stocks," said Kim Jung-hyun, an analyst at IBK Investment & Securities.

Steel, financial and auto stocks led the overall market gain, while some tech shares slipped on profit-taking.

POSCO, the country's top steelmaker, rose 1.57 percent to end at 290,500 won, and the No .2 Hyundai Steel surged 3.99 percent to end at 67,700 won.

Automakers remained in positive terrain with industry leader Hyundai Motor surging 1.12 percent to end at 180,000 won, and its smaller affiliate, Kia Motors, rising 2.3 percent to end at 53,400 won.

LG Chem, the country's leading chemicals maker, advanced 6.25 percent to 178,500 won, and Cheil Industries, the de facto holding firm of Samsung Group, rallied 11.11 percent to end at 150,000 won.

Financial stocks also joined the market rally, with the most valued financial group, Shinhan Financial, increasing 0.78 percent to end at 45,050 won and Industrial Bank of Korea, a policy lender, rising 1.45 percent to end at 13,950 won.

Brokerage houses were also up, with Samsung Securities surging 1.46 percent to end at 45,250 and NH Investment & Securities soaring 4.85 percent to finish at 10,850 won.

In contrast, Samsung Electronics remained unchanged at 1,314,000 won. On Thursday, the world's largest manufacturer of smartphones estimated its fourth-quarter operating income at 5.2 trillion won, higher than the market median of 4.78 trillion won.

SK hynix, a global chipmaker, shed 0.5 percent to end at 49,700 won, and LG Electronics, a major home appliance maker, fell 0.8 percent to end at 66,700 won.

The local currency ended at 1,090.00 won against the U.S. dollar, up 6.9 won from Thursday's close.

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys fell 0.4 basis point to 2.068 percent, and the return on the benchmark five-year government bonds dropped 0.8 basis point to 2.221 percent. (Yonhap)