South Korean stock and currency markets clawed back some of their losses from President Roh Moo-hyun's impeachment on Friday, as the government tried to limit the economic fallout.

Seoul's benchmark KOSPI index closed up 0.41 percent after losing 2.4 percent to a five-week closing low on Friday. Korea's won, which shed one percent on Friday, gained around 0.4 percent against the dollar.

"The main reason is that a lot of people expect the constitutional court to reverse the (impeachment) decision," said Nilesh Jasani, regional equities strategist at HSBC.

"Also, there's not much change in policy making or the policy-making team that is managing Korea, and the government has also decided to support the market," Jasani added.

Spreads on sovereign dollar bonds -- a measure of the nation's risk premium over safe-haven U.S. Treasuries -- tightened three to four basis points (bps).

Five-year South Korean credit default swaps -- insurance-like contracts that offer protection against debt default or restructuring -- were steady at 58/68 bps from 63/66 bps immediately after Friday's impeachment vote.

Roh's powers are suspended until the Constitutional Court rules on the parliamentary vote, taken after the opposition said he had broken an election law.

Prime Minister Goh Kun is acting president until the completion of that process, which could take up to six months.