South Korean shares edged to a fresh closing high on Monday, as high-end cosmetics companies were boosted by the extension of a currency swap between Seoul and Beijing.
The currency swap move has been seen as an easing of tensions between South Korea and China. Relations between the neighbouring countries had cooled due to the US shield deployed to protect the country from missile strikes by North Korea.
Cosmetic companies are among the many retail stocks to have been hit by Beijing-imposed trade restrictions on South Korean companies.
Shares in Hankook Cosmetics rose 21% to 16,700 Korean won, while Its Skin Co climbed 14.5% to 33,150 won. Cosmax added 9.5% t0 31,800 won.
Steelmakers were also boosted, with Posco gaining 5.9% to 344,000 won.
Kospi Composite hits new record
The country's benchmark index, the Kospi Composite, rose 0.3% to a fresh closing high of 2,480.05.
Stronger gains for the main index were denied by losses for electronics groups as SK Hynix fell 2.2%.