South Korean stocks advanced 0.38 percent Friday as investor sentiment got a boost from Spain’s pledge to cut spending and rising expectations for Chinese stimulus, analysts said. The local currency strengthened against the U.S. dollar.

The benchmark Korea Composite Stock Price Index climbed 7.53 points to 1,996.23. Trading volume was moderate at 668.4 million shares worth 4.85 trillion won ($4.36 billion) with gainers outpacing decliners 492 to 302.

“Spain’s budget plan implies it is moving towards accepting the austerity measures proposed by European nations. The progress won’t be easy but definitely is some relief for investors,” said Kwak Byung-ryeol, an analyst at Eugene Investment & Securities Co.

Spain on Thursday announced its budget plan that the debt-mired country says will reduce its expenditure by some 40 billion euros ($51.7 billion) next year.

Positive views that China will soon bring in a monetary easing buoyed investor sentiment, following its recent policy changes to boost the stock market, Kwak added.

Foreigners fueled the KOSPI’s gain, scooping up a net 176.3 billion won. Retail and institutional investors were net sellers.

Shares of insurance and telecom companies finished bullish.

Leading nonlife insurer Samsung Fire & Marine Insurance surged 3.24 percent to 239,000 won and mobile carrier SK Telecom rose 1.73 percent to 147,000 won. (Yonhap News)