South Korean stocks pared earlier losses to close a tad higher Friday, with investors weighing cautious optimism over the new coronavirus tally that is still high yet on a decline. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.84 points, or 0.37 percent, to close at 2,141.32. Trading volume was high at about 1.1 billion shares worth some 12.1 trillion won ($10 billion), with gainers outnumbering losers 432 to 423.

The index started off weak but later pared losses as retail investors sought to bag bargains.

Foreigners sold a net 70 billion won, extending their selling streak to a third session, while retail investors purchased a net 155 billion won. Institutions offloaded a net 30 billion won.

The country added 49 new cases of COVID-19 on Friday, showing a slight slowdown from a three-week high of 59 a day earlier.

However, health officials warned of another possible wave of infections, noting that "hidden" virus spreaders across the country may strain the virus fight.

In addition to the virus scare, the lingering North Korean risks also added to investors' wariness.

Military sources said North Korea may have redeployed soldiers to some guard posts inside the Demilitarized Zone, which had remained empty under a non-aggression military agreement signed between the divided Koreas in 2018.

Earlier this week, Pyongyang blew up a jointly built liaison office in its border town of Kaesong, leading to the exchange of hostile statements between Seoul and Pyongyang.

"The three visible factors that may affect the market are the possible resurgence in the COVID-19 toll, the US-China dispute and the geopolitical risks between the two Koreas," KB Securities analyst Yoon Jeong-sun said.

All these factors, however, seem to have been already projected in the index, she added.

Large caps closed mixed.

Market bellwether Samsung Electronics gained 1.15 percent to 52,900 won, while No. 2 chipmaker SK hynix lost 0.93 percent to 85,400 won.

Leading pharmaceutical firm Samsung BioLogics shed 1.11 percent to 801,000 won, but Celltrion climbed 1.39 percent to 291,500 won.

Top automaker Hyundai Motor stayed flat at 100,000 won, with its smaller affiliate Kia Motors retreating 1.05 percent to 33,050 won.

The local currency closed at 1,209.60 won per dollar, down 1.60 won from the previous session's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 0.2 basis point to 0.844 percent, and the return on the benchmark five-year government bond gained 2.0 basis points to 1.125 percent. (Yonhap)