South Korean stocks ended 0.34 percent higher Thursday as the U.S. Federal Open Market Committee's dovish stance helped to soothe investor concerns over an early rate hike, analysts said. The local currency gained ground against the greenback.

The benchmark Korea Composite Stock Price Index moved up 7.02 points to 2,041.88. Trading volume was low at 381.13 million shares worth 5.24 trillion won ($4.73 billion), with gainers beating decliners 443 to 378.

Analysts said the relatively dovish stance taken during the FOMC meeting may have helped ease global liquidity concerns.

"This year's growth outlook for the U.S. economy was much lower than what was expected, and it seems that they are taking a more cautious stance," said Soh Jae-yong, an analyst at Hana Daetoo Securities Co.

Market players had forecast that a rate hike may come sooner than later, the FOMC results did not give out many clues on the timing of the rate change.

Foreigners sold a net 251.41 billion won, and retail investors offloaded 271 million won. Institutions bought more shares than they sold at 246.83 billion won.

Market bellwether Samsung Electronics climbed 0.88 percent to 1,265,000 won, and flat screen maker LG Display added 0.38 percent to 26,450 won. Chipmaker SK hynix, in contrast, shrank 1.45 percent to 44,300 won.

Autos also closed mixed. Industry leader Hyundai Motor dropped 3.31 percent to 131,500 won, while Kia Motors rose 0.89 percent to 45,350 won. Car parts manufacturer Hyundai Mobis withdrew 2.84 percent to 205,000 won.

Banks were in negative territory, with Woori Bank falling 1.65 percent to 9,550 won and Shinhan Financial declining 0.74 percent to 40,150 won.

Cheil Industries, the de facto holding firm of top conglomerate Samsung Group, declined 1.72 percent to 171,500 won, and cosmetics giant AmorePacific moved up 3.21 percent to finish at 402,500 won.

The South Korean won ended at 1,107.15 won against the dollar, up 10.75 won from Thursday's close.

Bond prices, which move inversely to yields, ended higher. The yield on three-year Treasurys fell 2.2 basis points to 1.778 percent, and the return on the benchmark five-year government bonds dropped 4.5 basis points to 2.052 percent. (Yonhap)