SEOUL, Sept. 12 (Xinhua) -- South Korean shares rebounded on Wednesday as investors expected a new round of stimulus by the U.S. Federal Reserve amid eased concerns over the European fiscal crisis.
The benchmark Korea Composite Stock Price Index (KOSPI) advanced 30.03 points, or 1.56 percent, to close at 1,950.03. Trading volume stood at 699.62 million shares worth 5.15 trillion won (4.57 billion U.S. dollars).
The KOSPI started higher and extended its earlier gains throughout the session as expectations spread that the U.S. Fed will step up efforts to boost the economy by announcing a new round of bond purchase program at the end of its two-day policy meeting on Thursday.
Moody's warned that it may deprive the U.S. of its triple-A credit rating if the U.S. Congress fails to reach a long-term debt reduction plan next year, but investors shrugged off the warning.
In Europe, hopes were raised that Germany's Constitutional Court would not interfere with the eurozone rescue plan, thus paving the way for further bailout for those debt-ridden European countries. The court will rule on the European Stability Mechanism (ESM) on Wednesday.
Local institutional led the market rally by purchasing a net 436.9 billion won worth of shares. Foreign investors bought a net 74.4 billion won worth of local shares, but retail investors dumped a net 510 billion won worth of stocks.
Among large-cap shares, gainers outnumbered losers. Market bellwether Samsung Electronics jumped 3 percent to 1,294,000 won, and memory chip giant SK Hynix rose 1.1 percent to 22,200 won. Leading chemical firm LG Chem gained 1.5 percent to 313,000 won, and the nation's No.1 crude oil refiner SK Innovation added 1.2 percent to 170,000 won.
The world's largest shipbuilder Hyundai Heavy Industries surged 3.4 percent to 245,000 won, and top life insurer Samsung Life Insurance advanced 2.7 percent to 96,500 won. The nation's biggest auto parts maker Hyundai Mobis rose 1.8 percent to 307,000 won, but the country's No.2 carmaker Kia Motors lost 0.1 percent to 72,600 won.
The local currency finished at 1,126.4 won against the greenback, up 1.8 won from Tuesday's close.
Bond prices ended lower. The yield on the liquid three-year treasury notes added 0.02 percentage point to 2.80 percent, and the return on the benchmark five-year government bonds rose 0.02 percentage point to 2.87 percent.