Seoul shares to extend gains on hope of U.S. fiscal deal

Thu Dec 20, 2012 6:41pm EST

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SEOUL, Dec 21 (Reuters) - Seoul shares are likely to
continue rising on Friday, after U.S. peers ended higher
overnight buoyed by hopes of progress in negotiations about the
U.S. "fiscal cliff".
    "Every day, positive news or negative news rotates around
the U.S. budget talks, affecting shares. But hope is still alive
that U.S. politicians will eventually agree on a fiscal deal,"
said Kang Hyun-ki, an analyst at IM Investment & Securities.
    "The stock market has risen sharply since late November on
expectations of a fiscal deal and other reasons, but the pace of
rise will slow as momentum fizzles out," he said.    
    Wall Street advanced in late afternoon trade on Thursday
after Republican House Speaker John Boehner pledged to keep
working on a solution to the fiscal cliff while still
criticizing President Barack Obama's approach to budget talks.
    Republicans in the U.S House of Representatives pushed ahead
with their own fiscal plan which Obama has vowed to veto -
complicating negotiations with the White House. 
    The Korea Composite Stock Price Index (KOSPI) ended
up 0.32 percent at 1,999.50 points on Thursday after rising as
high as 2,006.08 points, its highest intraday level since Oct.
5. 
-----------------MARKET SNAPSHOT @ 22:44 GMT ------------------
                  INSTRUMENT      LAST      PCT CHG   NET CHG
S&P 500                1,443.69        0.55%     7.880
USD/JPY                   84.34       -0.02%    -0.020
10-YR US TSY YLD     1.800         ---      0.007
SPOT GOLD             $1,647.35        0.01%     0.210
US CRUDE                 $90.13        0.17%     0.150
DOW JONES              13311.72        0.45%     59.75
ASIA ADRS               131.39        1.06%      1.38
-------------------------------------------------------------
>Wall St bounces back on hope for 'cliff' solution  
>Bond prices nudge higher on U.S. fiscal muddle     
>Yen still on the back foot as year-end lull sets in
 
>Crude futures end mixed as budget deal stalls      
                         
---STOCKS TO WATCH---  
      
    **SAMSUNG ELECTRONICS **
    Tech giant Apple Inc, battling Samsung Electronics
over patents in several countries, argued on Thursday that a
U.S. appeals court should reconsider its decision to overturn a
pretrial sales ban on Samsung for infringement. 
    Meanwhile, Samsung Electronics, the world's No.1 memory-chip
maker, said it will invest $3.9 billion to expand system-chip
production in Texas after completing talks with the state
government.   

 (Reporting by Hyunjoo Jin; Editing by Eric Meijer)
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