Seoul shares seen rising on strong U.S. economic data

SEOUL, Jan 18 (Reuters) - Seoul shares are likely to rise on
Friday, tracing Wall Street's climb on better-than-expected U.S.
economic data, although caution over fourth-quarter earnings is
likely to cap gains.
"China's fourth-quarter GDP announcement expected during
trading could prove a variable in today's session," said Lim
Jong-pil, an analyst at Hyundai Securities. China's annual
economic growth may have quickened to 7.8 percent in the fourth
quarter a Reuters poll showed.
Global equity markets rallied on Thursday, with the S&P 500
index closing at a five-year high, as surprisingly strong U.S.
housing and labor market data signaled strength in the world's
largest economy.
The Korea Composite Stock Price Index (KOSPI) fell
0.16 percent to close at 1,974.27 points on Thursday, holding
around a one-month low.

--------------------MARKET SNAPSHOT @22:32 GMT---------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1,480.94 0.56% 8.310
USD/JPY 89.90 0.02% 0.020
10-YR US TSY YLD 1.884 -- 0.065
SPOT GOLD $1,687.00 -0.02% -0.260
US CRUDE $95.49 1.33% 1.250
DOW JONES 13596.02 0.63% 84.79
ASIA ADRS 134.90 0.92% 1.22
------------------------------------------------------------->Ho
using, job-market data push S&P to 5-year high
>U.S. bonds slump as upbeat housing data spur sales
>Yen tumbles on forceful BoJ action forecast
>Oil rises on improving U.S. jobs, housing data

---STOCKS TO WATCH---

**LOTTE CHEMICAL **
Lotte Chemical Corp said late Thursday it will sell 40,000
shares in a block sale Friday to raise 10.2 billion won ($9.6
million) to be used to invest in new projects and operating
funds.

**TONGYANG GROUP AFFILIATES**
Tongyang Networks Corp said late Thursday it has
acquired a 43.5 percent stake in unlisted affiliate Tongyang
Online Co Ltd for 6.5 billion won. With this, Tongayng Networks
will own 85.2 percent of IT contents developer Tongyang Online.
Tongyang Group, of which both Tongyang Networks and Tongyang
Online are affiliates, said Thursday it had chosen Goldman Sachs
and Tong Yang Securities as advisors to sell Tongyang
Inc's household appliance business.
($1 = 1058.1500 Korean won)

(Reporting by Joyce Lee; Editing by Richard Pullin)