South Korea's benchmark stock index on Tuesday hit its highest mark since July 2011, helped by gains made by Samsung Electronics, Hyundai Motor and other market heavyweights. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index rose 21.37 points, or 0.99 percent, to close at 2,178.38. Trade volume was moderate at 299 million shares worth 5.38 trillion won ($4.8 billion). 

The local stock market opened higher, helped by a buying binge by foreign and institutional investors.

Risk appetite has been strengthened since the Federal Reserve gave no indications last week that it would step up rate hikes this year, analysts said.

Kim Sung-hwan, a Bookook Securities analyst, said uncertainties eased after last week's Fed meeting.

"A positive view by foreign investors on the local stock market will be maintained for the time being," Kim said.

Samsung Electronics rose 1.58 percent to end at an all-time high of 2,128,000 won, while SK hynix, a global chipmaker, edged down 0.11 percent to 47,550 won.

Naver, the operator of the country's top Internet portal, climbed 6.48 percent to 871,000 won.

Hyundai Motor jumped 8.63 percent to 170,000 won, and its smaller affiliate Kia Motors gained 3.51 percent to 38,300 won.

The local currency closed at 1,120.30 won against the US dollar, down 0.2 won from the previous session's close. 

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys remained flat at 1.670 percent and the return on the benchmark five-year government bond added 0.1 basis point to 1.863 percent.(Yonhap)