South Korean stocks closed higher Tuesday, extending a winning streak to an eighth consecutive session on hopes for economic recovery and ahead of the Fed meeting this week. The Korean won sharply rose against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.63 points, or 0.21 percent, to close at 2,188.92. Trading volume was high at about 805.3 million shares worth some 14.5 trillion won ($12.1 billion), with losers outnumbering gainers 473 to 366.

The KOSPI extended gains every session since May 29, tracking Wall Street backed by hopes of a quick economic rebound from the coronavirus pandemic.

Market expectations ran high over the upcoming US Federal Open Market Committee (FOMC) meeting, set for June 9-10 (New York time).

The FOMC has indicated that it will announce a set of additional stimulus measures to buoy the coronavirus-hit economy.

Institutions sold a net 396 billion won, and foreigners offloaded a net 21.2 billion won. Individuals purchased a net 411 billion won.

In Seoul, large caps finished mixed.

Samsung affiliates ended in positive terrain after a Seoul court rejected an arrest warrant for the heir of Samsung Group, which accounts for more than 20 percent of the main index's total market cap.

Market bellwether Samsung Electronics gained 1.09 percent to 55,500 won, while No. 2 chipmaker SK hynix shed 1.32 percent to 89,800 won.

Leading pharmaceutical firm Samsung Biologics added 1.81 percent to 676,000 won, but top chemical firm LG Chem slid 0.35 percent to 432,500 won.

Top automaker Hyundai Motor lost 0.88 percent to 112,000 won.

The local currency closed at 1,197.70 won per dollar, up 7.10 won from the previous session's close. 

Bond prices, which move inversely to yields, closed higher. The yield on three-year Treasurys lost 4.1 basis points to 0.861 percent, and the return on the benchmark five-year government bond slipped 5.7 basis points to 1.134 percent. (Yonhap)