Korean shares ended higher Wednesday as investors expect the U.S. Fed to freeze its policy rates, analysts said. The local currency fell against the U.S. dollar.

After moving in a tight range, the benchmark Korea Composite Stock Price Index (KOSPI) gained 4.93 points, or 0.25 percent, to finish at 1.974.90. 


Trading volume was moderate at 289.95 million shares worth 4.06 trillion won, with decliners outnumbering gainers 411 to 390.

Investors are increasingly turning their eyes to a two-day Federal Open Market Committee (FOMC) meeting. The results will be available early Thursday in Korea.

"As the Fed is widely expected to freeze rates this time, the market's recent trend in the risk-on direction will continue to prop up emerging-market stocks," Bookook Securities analyst Kim Sung-hwan said.

Foreigners purchased 86.94 billion won ($73 million) worth of stocks. But institutions and individuals sold a net 132.71 billion won, keeping the main index from rising further.

Among top performers, market kingpin Samsung Electronics rose 0.24 percent to 1,256,000 won and No. 2 carmaker Kia Motors added 0.74 percent to 47,500 won.

In contrast, No. 1 steelmaker POSCO fell 3.33 percent to 203,000 won and top builder Hyundai Engineering & Construction plunged 8.91 percent to 36,300 won.

The Korean currency closed at 1,193.30 against the U.S. dollar, down 5.60 won from Tuesday's close.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 0.9 basis point to 1.542 percent and the return on the benchmark five-year government bond climbed 0.7 basis point at 1.668 percent. (Yonhap)