South Korean stocks closed 0.99 percent higher as investors' sentiment was boosted by signs of an economic recovery in the eurozone and China, analysts said. The local currency closed higher against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 19.36 points, or 0.99 percent, to finish at 1,974.67. Trading volume was low at 265.1 million shares worth 4.44 trillion won (US$4.08 billion) with gainers outpacing losers 456 to 338.

Analysts said Seoul shares gathered ground as improved economic data from the eurozone and China cast a brighter outlook on earnings of the export-reliant country's companies.

"The United States' disappointing jobs report for August also eased woes over the Federal Reserves' tapering of quantitative easing," said Kang Hyun-gie, a researcher at I'M Investment & Securities Co.

=The U.S. added 169,000 jobs in the non-agricultural sector last month, hovering below the market estimate of 180,000 jobs. Its unemployment rate for August stood at 7.3 percent, down 0.1 percentage point from a month earlier.

Overseas investors extended their buying rally to the 12th consecutive session with a 540.4 billion won net purchase. In contrast, institutions sold a net 98.8 billion won, and individuals offloaded a net 413.5 billion won.

NAVER, the country's top Internet portal provider, gained 6.46 percent to 486,000 won on rosy prospects for its mobile messenger service LINE.

Shipbuilders also gathered ground, with Hyundai Heavy Industries adding 5.19 percent to 243,000 won and Samsung Heavy Industries climbing 1.94 percent to 41,950 won. Daewoo Shipbuilding & Marine Engineering moved up 4.78 percent.

Builders traded bullish, with Hyundai Engineering & Construction rising 1.64 percent to 61,900 won and Daelim Industrial moving up 4.97 percent to 99,200 won. Daewoo Engineering & Construction added 3.72 percent to 8,090 won.

Mobile carriers closed mixed, with No. 1 SK Telecom rising 0.46 percent to 216,500 won and LG Uplus, the smallest player, advancing 2.4 percent to 12,800 won. In contrast, KT closed flat at 37,850 won.

The local currency ended at 1,086.80 won against the greenback, up 6.20 won from Friday's close due to the weaker-than-expected U.S. jobs report for August. (Yonhap news)