Korean stocks closed 0.6 percent higher on Monday as the Greece parliament’s approval of an austerity bill helped quell investor jitters over a possible Greek default, analysts said. The local currency rose against the U.S. dollar.

The benchmark KOSPI rose 12.03 points to 2,005.74. Trading volume was moderate at 447.1 million shares worth 5.69 trillion won ($5.07 billion), with gainers outnumbering decliners 484 to 324.

“The course of a bailout package for Greece is yet to be determined, but the parliament approval helped stave off uncertainties over the issue,” said Lim Dong-lak, an analyst at Hanyang Securities Co.

Earlier in the day, Greek lawmakers voted to pass a bill that imposes new austerity measures in exchange for a new bailout agreement to reduce the country’s national debt.

European finance ministers are scheduled to meet on Wednesday to decide whether to approve the aid package for the debt-ridden country.

Foreign investors snapped a net 161.6 billion won worth of shares, extending their buying streak to a sixth session. But both institutions and retail investors opted to lock in profits.

“Liquidity conditions for foreign investors are favorable and eurozone worries are easing. While their buying volume may weaken, the buying trend itself is likely to continue until the end of the month,” said Lim.

Tech blue chips gathered ground. Market bellwether Samsung Electronics added 1.98 percent to 1,083,000 won and LG Display rose 2.59 percent to 29,750 won.

Automakers were also bullish with Kia Motors jumping 3.64 percent to 68,300 won and its auto-parts affiliate Hyundai Mobis rising 2.11 percent to 291,000 won.

Korea Aerospace Industries surged 7.61 percent to 33,950 won.

Last week, the company said it aims to up its operating profit goal for this year by 37 percent.

Oil refiners closed mixed. Market leader SK Innovation closed up 0.79 percent at 191,000 won. But No. 3 player S-Oil slipped 0.72 percent to 137,000 won.

The local currency closed at 1,121.9 won against the greenback, up 1.9 won from Friday’s close amid fading fears over Greece’s default and the KOSPI’s rise, dealers said. 

(Yonhap News)