SEOUL, May 22 (Xinhua) -- South Korean shares rose on Wednesday after falling in the prior two days as Bank of Japan (BOJ) decided to keep its easier monetary policy and U.S. Federal Reserve officials made dovish remarks.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 12. 74 points, or 0.64 percent, to close at 1,993.83. Trading volume stood at 322.25 million shares worth 4.45 trillion won (4 billion U.S. dollars).
The Japanese central bank re-affirmed its plan to double the monetary base over the next two years during the two-day monetary policy meeting.
Ahead of the closely watched testimony by Fed Chairman Ben Bernanke on Wednesday, other Fed officials made dovish remarks, boosting expectations that the U.S. central bank would maintain its quantitative easing measures.
St. Louis Fed President James Bullard said in Germany that the Fed should continue quantitative easing to boost economic growth. New York Fed President William Dudley said that the Fed's"balance sheet is likely to increase further in size and then stay large for a long time."
Foreign and institutional investors led the market advance by purchasing shares worth 122 billion won and 109.6 billion won respectively. Retail investors offloaded shares worth 231.6 billion won in a bid to lock in profits.
Most large-cap shares ended bullish. Market bellwether Samsung Electronics rose 1.1 percent, and memory chip giant SK Hynix gained 2.3 percent. Top automaker Hyundai Motor added 1.8 percent and the nation's biggest auto parts maker Hyundai Mobis jumped 3.1 percent.
Top steelmaker POSCO climbed 1.6 percent, but leading chemical firm LG Chem declined 0.5 percent. The world's No.1 shipbuilder Hyundai Heavy Industries increased 0.5 percent, while top wireless carrier SK Telecom ended flat at 215,000 won.
The local currency finished at 1,114.0 won against the greenback, down 3.4 won from Tuesday's close.
Bond prices ended lower. The yield on the liquid three-year treasury notes finished rising 0.01 percentage point to 2.61 percent, and the return on the benchmark five-year government bonds added 0.01 percentage point to 2.7 percent.
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