Seoul - Shares closed slightly higher Thursday on the Seoul stock exchange as central banks around the world, including South Korea's, cut interest rates.

The benchmark Kospi index edged up 8.2 points, or 0.6 per cent, to close at 1,294.89.

Advancing issues outnumbered losers 414 to 406.

The main index of the technology-heavy Kosdaq market declined 1.63 points to 369.84.

Earlier in the day, the Bank of Korea lowered the key interest rate by a quarter percentage point to 5 per cent as the US Federal Reserve and major European central banks slashed theirs to calm global financial unrest.

The South Korean won rebounded from a 10-year-low against the dollar.

On currency markets, the US dollar was quoted at 1,379.50 won, after 1,395.0 won on Wednesday. (dpa)