An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Monday. (Yonhap)

Seoul shares gained more than 1 percent Monday on the back of weaker-than-expected US inflation data for November, along with eased concerns over a possible government shutdown in the world's top economy.

The Korean won depreciated against the greenback, breaching the 1,450 won level for the third straight session.

The benchmark Korea Composite Stock Price Index added 37.86 points, or 1.57 percent, to close at 2,442.01.

The trade volume was moderate at 415.4 million shares worth 7.18 trillion won ($4.94 billion), with winners outnumbering losers 717 to 185.

Foreigners bought a net 144.8 billion won, while individuals dumped a net 674 billion won. Institutions also scooped up a net 434.9 billion won.

Investors' sentiment, which was previously hurt by US Federal Reserve Chair Jerome Powell's remark that the central bank will seek just two additional rate cuts next year, improved after the personal consumption expenditure rose by lower-than-expected 2.4 percent on-year in November.

Abated concerns over a possible government shutdown in the US following the last-minute passage of a related bill Friday, also lent support to investors' appetite for riskier assets.

"The local market took a breather amid signs of resilience in the US market," said Han Ji-young, an analyst at Kiwoom Securities.

In Seoul, top tech giant Samsung Electronics rose 0.94 percent to 53,500 won, and No. 2 chipmaker SK hynix added 0.65 percent to 169,600 won.

Steelmakers traded higher as well, with Korea Zinc moving up 11.2 percent to 1,102,000 won and POSCO Holdings rising 0.96 percent to 262,000 won.

Automotive shares closed mixed, with Hyundai Motor increasing 2.14 percent to 215,000 won, while its sister Kia lost 0.3 percent to 100,900 won. Hyundai Mobis finished unchanged at 244,000 won.

SBS, a major broadcaster, shot up to the daily permissible limit of 30 percent, reaching 26,000 won, after the company announced its contract to supply entertainment content to global streaming service provider Netflix.

The local currency was quoted at 1,452 won against the US dollar at 3:30 p.m., down 0.6 won from the previous session. (Yonhap)