The Korea Stock Exchange composite index closed the day up 14.38 points at 388.35 after a rocky morning in which investors were sidelined following the announced s ale of Kia Motors. Volume was 121.8 million shares worth $518 million with advancing issues outpacing those declining 500 to 257, with 105 stocks unchanged. Lee said the firmer yen and declining money market rates will continue to attract retail investors back into the market.

Foreign investors were net sellers of shares worth an estimated $2.1 million institutions were net buyers of 1.3 trillion, while retail investors were net buyers of 13 billion wonworth of shares. Dealers said there was also steady retail interest in the market, after earlierlacklustre trade.

Meanwhile, buying by the government funds sent Japanese stock prices higher Tuesday for the third consecutive session. The US dollar edged up against the yen. The nikkei stock average of 225 selected issues rose 240.85 points, or 1.78 per cent, closing at 13,808.05 its highest level since Oct, 7. On Monday, the nikkei had gained 286.66 points, or 2.16 per cent.

Malaysian share prices soared 6.7 per cent Tuesday in the run-up to the 1999 budget to be presented in parliament later this week, deal ers said. The Kuala Lumpur stock exchange composite index ended at 422.97 points, up 26.71 points from Friday's close. Hong Kong share prices closed higher, boosted by hefty gains in Tokyo and expectations of further cuts in local interest rates. The Hang Seng index rose 43.70 points, or 0.5 per cent, closing at 9,642.75.

Taipei share prices closed lower on lingering concerns over companies'third-quarter earnings.