Seoul shares set to snap 2-day gain as U.S. GDP disappoints

SEOUL, Jan 31 (Reuters) - Seoul shares are likely to head
lower on Thursday after two days of gains, tracking a fall on
Wall Street after data showed the U.S. economy unexpectedly
contracted in the fourth quarter.
U.S. gross domestic product fell at a 0.1 percent annual
rate, its weakest performance since the economy emerged from
recession in 2009, the Commerce Department said.
"South Korean shares will trade lower today as concern about
the U.S. economy is likely to resurface," said Park Hyung-jung,
an analyst at Meritz Securities.
The Federal Reserve on Wednesday left in place its monthly
$85 billion bond-buying stimulus plan, even as it indicated a
recent stall in U.S. economic growth was likely temporary.

"Korea is one of few Asian countries which have seen
outflows of foreign capital from the domestic stock market,
reflecting foreigners' bearish view of market fundamentals,"
Park said.
The Korea Composite Stock Price Index (KOSPI) has
fallen 1.6 percent so far this year, as the stronger local
currency sparked jitters about exporter's earnings. In contrast,
Asia-Pacific shares outside Japan have risen 3
percent.
The KOSPI finished up 0.43 percent at 1,964.44 points on
Wednesday, extending gains for a second day after recent sharp
losses.
------------------MARKET SNAPSHOT @22:19 GMT-----------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1,501.96 -0.39% -5.880
USD/JPY 91.04 -0.03% -0.030
10-YR US TSY YLD 1.992 -- -0.007
SPOT GOLD $1,676.17 -0.03% -0.530
US CRUDE $97.96 0.40% 0.390
DOW JONES 13910.42 -0.32% -44.00
ASIA ADRS 135.62 0.17% 0.23
-------------------------------------------------------------
>Wall St ends lower after Fed statement
>Prices little changed as Fed sees moderate growth
>U.S. dollar at 14-month low vs euro
>Oil rise as economic optimism overshadows US data

(Reporting by Hyunjoo Jin; Editing by Richard Pullin)