South Korean stocks closed 0.61 percent higher Wednesday, boosted by foreign buying, despite persistent U.S. budget woes, analysts said. The local currency gained against the U.S. dollar.

The benchmark Korea Composite Stock Price Index finished up 11.86 points to 1,947.04. Trading volume was moderate at 481.5 million shares worth 4.03 trillion won ($3.73 billion) with losers outpacing gainers 442 to 363.

“The main index recently showed a modest relief rally after an urgent Greek bailout issue was eased,” said analyst Lim Soo-kyun at Samsung Securities Co. “But its move was volatile as investors were sensitive to budget talks in the United States.”

“In a market with relatively light trading volume, a massive foreign buying can easily push up the index,” said Lim.

Foreigners scooped up a net 112.7 billion won worth of local shares, extending their buying streak for a fifth consecutive session, and institutions bought 59.2 billion won.

Most shares finished in positive territory, with techs and retailers leading the rise.

Tech giant Samsung Electronics, the world’s largest smartphone maker, jumped 1.75 percent to close at a record 1,455,000 won and LG Display, the biggest panel supplier for Apple’s iPad tablet, rose 2.32 percent to 35,350 won.

Top retailer Lotte Shopping gained 0.7 percent to 359,500 won and No. 2 industry player Shinsegae climbed 0.25 percent to 204,500 won.

Shipbuilders also ended bullish, with industry leader Hyundai Heavy Industries adding 0.24 percent to 211,000 won.

The local currency ended at 1,081.5 won against the greenback, up 1.9 won from Tuesday’s close, as investors opted to decrease their dollar holdings due to the U.S. fiscal cliff woes, dealers said. (Yonhap News)