Seoul - Shares finished almost 4 per cent higher Friday on the Seoul stock exchange as South Korea's central bank cut interest rates. The local currency edged up against the dollar.

The benchmark Kospi index rose 42.27 points, or 3.9 per cent, to close at 1,134.49.

Advancing issues outnumbered losers 685 to 171.

The main index of the technology-heavy Kosdaq market surged 13.58 points to 325.54.

Earlier in the day, the Bank of Korea lowered the key interest rate by a quarter percentage point to 4.0 per cent in a bid to calm markets and boost the economy.

On currency markets, the US dollar was quoted at 1,328.8 won, after 1,330.8 won on Thursday. (dpa)