South Korean shares closed nearly 3 percent higher Wednesday on hopes for a policy push by the Lee Jae-myung government. The Korean won also rose against the US dollar.
The benchmark Korea Composite Stock Price Index added 71.87 points, or 2.66 percent, to close at 2,770.84.
Trade volume was heavy at 485.85 million shares worth 11.95 trillion won ($8.7 billion), with gainers beating losers 798 to 119.
Foreign and institutional investors bought a net 1.05 trillion won and 203.48 billion won, respectively, while individuals sold a net 1.22 trillion won.
Analysts said foreign investors picked up local stocks on expectations that the new administration would support key sectors.
Overnight, the Dow Jones Industrial Average gained 0.51 percent, while the tech-heavy Nasdaq Composite climbed 0.81 percent.
Lee Jae-myung of the liberal Democratic Party won the presidential election, defeating Kim Moon-soo of the conservative People Power Party. The vote followed the ouster of former President Yoon Suk Yeol after martial law was imposed in December.
Lee began his five-year term earlier in the day.
Most large-cap stocks advanced.
Market bellwether Samsung Electronics rose 1.76 percent to 57,800 won, and its rival SK hynix jumped 4.82 percent to 217,500 won.
Top carmaker Hyundai Motor climbed 1.09 percent to 186,000 won, and national flag carrier Korean Air gained 0.66 percent to 22,800 won.
Mirae Asset Securities surged 13.25 percent to 17,690 won on expectations tied to Lee's pledge to usher in a "KOSPI 5,000 era" by reviving economic growth.
Leading battery maker LG Energy Solution rose 1.41 percent to 288,500 won, and No. 1 steelmaker POSCO Holdings was up 0.61 percent to 245,500 won.
Among losers, state-run utility Korea Electric Power Corp. fell 1.5 percent to 29,650 won, and top cosmetics firm AmorePacific declined 0.15 percent to 134,100 won.
The local currency was quoted at 1,369.50 won against the greenback at 3:30 p.m., up 3.6 won from the previous session. (Yonhap)
