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

South Korean stocks finished higher Friday as US President Donald Trump's call for interest rate cuts boosted appetite for risky assets. The local currency gained against the US dollar.

The benchmark Korea Composite Stock Price Index added 21.31 points, or 0.85 percent, to close at 2,536.8, rebounding from a 1.24 percent drop the previous day.

Trade volume was moderate at 576.9 million shares worth 9.83 trillion won ($6.87 billion), with winners outnumbering losers 542 to 321.

Foreigners purchased a net 203.8 billion won and institutions scooped up a net 70.6 billion won. Individual investors sold a net 380.1 billion won.

Overnight, US stocks rallied after Trump called for cuts in interest rates and oil prices during his video message for the World Economic Forum in Davos, Switzerland.

In Seoul, semiconductor, steel, bio and entertainment stocks led the daily gains.

Chip giant Samsung Electronics stayed flat at 53,700 won and its rival SK hynix climbed 0.68 percent to 221,000 won.

Steel giant POSCO Holdings advanced 0.77 percent to 261,500 won, while Hyundai Steel went up 2.63 percent to 23,450 won.

Bio tech giant Samsung Biologics vaulted 3.23 percent to 1,087,000 won, with leading pharmaceutical firm Celltrion adding 0.61 percent to 180,200 won.

Entertainment giant CJ ENM increased 0.57 percent to 52,900 won, and Hybe, a record label behind global superstar BTS, climbed 2.07 percent to 221,500 won.

Top carmaker Hyundai Motor lost 1.91 percent to 205,000 won, while its sister Kia declined 0.97 percent to 101,700 won.

The local currency was trading at 1,431.3 won against the US dollar at 3:30 p.m., up 6 won from the previous session.

The stock market will reopen next Friday after the Lunar New Year's holiday, which runs through Thursday. (Yonhap)