Seoul shares seen down as bank fear returns

SEOUL, April 21 (Reuters) - Seoul shares may fall on Tuesday
after overnight losses on Wall Street, with weak results from
Bank of America (BAC.N) likely to weigh on sentiment towards
financials.

"Bank of America's rise in bad loans comes at a time when
market sentiment has turned cautious following weeks of gains. We
will see losses, quite possibly substantial ones," said Lee
Jae-mahn, a market analyst at Tong Yang Securities.

A surge in troubled loans overshadowed better-than-expected
earnings at Bank of America, and comments by the largest U.S.
bank that it expects the credit situation to worsen, will likely
weigh on Seoul banking issues such as KB Financial Group
(105560.KS). [ID:nN20380236]

Meanwhile news that IBM's (IBM.N) quarterly revenue fell by a
bigger-than-expected 11 percent may put technology issues
including Samsung Elec (005930.KS) under pressure.
[ID:nN20352411]

"This week will be a week of corrections. The index may fall
to 1,270 points in the near-term," Lee added, referring to the
KOSPI index's level in early April.

The Korea Composite Stock Price Index .KS11 (KOSPI)
finished up 0.56 percent at 1,336.39 on Monday.
----------------------MARKET SNAPSHOT @ 2247 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 832.39 -4.28% -37.210
USD/JPY JPY= 98.04 0.08% 0.080
10-YR US TSY YLD US10YT=RR 2.8562 -- 0.000
SPOT GOLD XAU= 884.05 -0.01% -0.100
US CRUDE CLc1 45.8 -0.17% -0.080
DOW JONES .DJI 7841.73 -3.56% -289.60
ASIA ADRS .BKAS 95.58 -4.00% -3.98
-------------------------------------------------------------

MARKETS SUMMARY
*Wall St sinks on banks' woes; IBM drops late [nN20421816]
*Oil drops over 8 pct on economic outlook, dollar [nSYD428032]
*Increased anxiety lifts dollar, euro slumps on ECB [nN20408601]
*Treasuries rally as bank fears clobber Wall Street [nN20563843]

STOCKS TO WATCH

KOREA LINE (005880.KS)

The shipping company said on Monday in a filing to the Korea
Exchange that it plans to dispose of five ships for 214.5 billion
won ($161.3 million) to Tiger United S.A. and lease them back in
a bid to secure liquidity.

HYUNDAI MOTOR (005380.KS)

South Korea's top automaker said on Thursday it had raised
its sales growth forecast for China this year to 36 percent from
22 percent as economic stimulus measures spur demand in the
world's largest auto market. [ID:nSHA367607]

LG ELECTRONICS (066570.KS)

The world's No.4 handset maker is scheduled to report its
first quarter earnings at around 0500 GMT.

(Reporting by Jungyoun Park; Editing by Jonathan Hopfner)