South Korean stocks closed 0.96 percent higher Thursday as investor sentiment was boosted on abated woes over the Syrian crisis, analysts said. The local currency closed higher against the greenback.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 18.62 points to finish at 1,933.03. Trading volume was low at 281.9 million shares worth 4.41 trillion won (US$4.04 billion) with gainers outpacing losers 500 to 309.

Analysts said Seoul shares closed higher as U.S.-led military action on Syria is anticipated to last for less than 60 days, and it is expected to refrain from dispatching ground forces to the Middle Eastern country.

The local stock market also got a boost as the U.S. Federal Reserve Beige Book released on Wednesday also said that South Korean economy is recovering at a "modest to moderate" pace.

"As the manufactures' index of the U.S. and the eurozone is improving, (the local stock market) can still gather ground even if the Fed cuts its quantitative easing," said Ma Joo-ok, an analyst at Kiwoom Securities Co.

"South Korea also boasts better market momentum compared to other emerging countries, and its main index may rise to reach 2,000 by the end of this month," Ma added.

Overseas investors extended their buying rally to the 10th consecutive session with a 510.7 billion won net purchase. In contrast, institutions sold a net 109.9 billion won, and individuals also offloaded a net 375.5 billion won.

Carmakers closed higher, with Hyundai Motor rising 0.62 percent to 244,000 won and its affiliate Kia Motors adding 0.92 percent to 66,100 won. Auto parts maker Hyundai Mobis gained 1.62 percent to 282,000 won.

Insurers also gathered ground, with Samsung Life Insurance adding 2 percent to 102,000 won and Hanwha Life Insurance increasing 3.35 percent to 6,780 won. Hyundai Marine & Fire added 1.03 percent to 29,300 won.

Tech shares closed mixed, with top player Samsung Electronics adding 1.87 percent to 1,365,000 won, while leading chipmaker SK hynix shed 1.75 percent to 28,150 won. Flat panel maker LG Display shed 1.73 percent to 28,350 won.

SK Telecom, the country's No. 1 mobile carrier, added 1.39 percent to 218,500 won, and LG Uplus, the smallest player, rose 2.8 percent to 12,850 won. In contrast, KT closed flat at 36,450 won.

The local currency ended at 1,098.40 won against the greenback, down 3.90 won from Wednesday's close, as investors took a wait-and-see approach on the U.S. jobs data slated to be announced later this week, dealers said. (Yonhap news)