eoul stocks hit 34-month high

Korean stocks finished 0.97 percent higher to a 34-month high on Monday as foreigners snapped up auto and machinery firms on expectations of a strongerlocal currency, analysts said. The Korean won gathered ground against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 18.4 points to 1,915.71, the strongest close since 1,919.47 on Dec. 24, 2007. Trading volume was moderate at 399 million shares, worth 6.5 trillion won ($5.8 billion), with gainers outpacing losers 518 to 323.

Substantial purchases by overseas investors helped the KOSPI extend its winning run to the fourth session as foreigners were lured by predictions the Korean won will strengthen down the road. 

The local currency ended at 1,116.3 won to the greenback, up 6.7 won from Friday’s close and the second daily gain.

Wrapping up a two-day meeting in Korea Saturday, Finance ministers and central bank governors from the Group of 20 economies agreed to avoid artificial devaluation of currencies. Analysts said the pledge will boost the value of mostly emerging currencies, including the won.