South Korea's KOSPI on June 16 recovered the 8,700 level on combined buying by foreign investors and institutions. Analysts said a war-end agreement and a drop in oil prices lifted the index. The Kosdaq, however, closed lower, with the two markets moving in opposite directions.

The KOSPI ended up 180.62 points, or 2.11 percent, at 8,726.60. It opened up 150.57 points, or 1.76 percent, at 8,696.55.

Foreign investors and institutions led the flow. In the main stock market, foreigners net bought 1.54 trillion won and institutions net bought 705.4 billion won. Retail investors, however, net sold 2.18 trillion won. Continued foreign buying has kept the index rising, led by large-cap stocks.

Top market-cap stocks rose, led by chipmakers. Samsung Electronics closed up 6,000 won, or 1.78 percent, at 343,000 won. SK Hynix ended up 94,000 won, or 4.11 percent, at 2,382,000 won.

Elsewhere, SK Square gained 6.23 percent and Samsung Electro-Mechanics rose 2.45 percent. Samsung Life increased 1.89 percent and Samsung C&T added 0.40 percent.

Hyundai Motor fell 1.08 percent, LG Energy Solution dropped 2.38 percent and HD Hyundai Heavy Industries slid 2.24 percent.

The KOSPI's rise was also seen as reflecting easing geopolitical concerns linked to the United States and Iran, while a fall in the won-dollar exchange rate was interpreted as supportive for foreign investor flows.

The Kosdaq was weaker. It ended down 15.35 points, or 1.48 percent, at 1,018.68. With buying recently concentrated in large-cap KOSPI stocks, the Kosdaq has been relatively weak.

In the Seoul foreign exchange market, the won was quoted at 1,511.40 per dollar, up 4.10 won from the previous session.