Korean shares closed marginally higher Tuesday as institutional investors opted for bargain hunting, with other Asian stocks mostly higher on Wall Street gains. The local currency sharply rose against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 0.11 percent, or 2.26 points, to 2,011.36. Trade volume stood at a moderate 397.41 million shares worth 4.39 trillion won ($3.8 billion), with gainers outnumbering losers 511 to 292.Institutions bought a net 139 billion won worth of domestic shares, while individuals sold a net 153.62 billion won on profit taking. 

Market players did not respond to the Bank of Korea's decision to leave its key rate unchanged at a record low of 1.5 percent as it was widely expected.

The central bank, however, cut its outlook for growth this year to 2.8 percent from its previous forecast of 3.0 percent.

Financial and builder stocks closed higher, with top life insurer Samsung Life Insurance advancing 2.27 percent to 112,500 won, leading shipbuilder Samsung Heavy Industries Co. jumping 5.45 percent to 11,600 won and major construction firm Daewoo Engineering & Construction climbing 7.45 percent to 6,490 won.

In contrast, top market cap Samsung Electronics shed 0.85 percent to 1,288,000 won and No. 1 automaker Hyundai Motor Co. fell 0.65 percent to 153,000 won.

On Monday (local time), U.S. stocks climbed as energy shares were buoyed by the news that Kuwait's crude oil output fell by more than half to 1.1 million barrels a day on Sunday due to strikes by oil workers following the government's move to cut wages. 

Korea's won closed at 1,136.30 against the greenback, up 13.90 won from the previous session's close. (Yonhap)