Seoul shares set to extend gains as German data lifts sentiment

SEOUL, Feb 20 (Reuters) - Seoul shares are likely to
continue advancing after marking their highest close in almost
four weeks on Wednesday, helped by a pick-up in German economic
sentiment that buoyed U.S. and European shares.
It was the latest sign that the largest economy in Europe, a
key market for South Korean exporters, is bouncing back.
"The KOSPI, which underwent corrections early this year
because of foreign selling, will climb this month to around the
2,000-point level as foreigners are seen returning to the
market," said Kim Hak-kyun, an analyst at KDB Daewoo Securities.
Market participants have said a slowing in the pace of yen's
declines, which makes rival Japanese exporters more competitive
and the KOSPI's fall to attractive valuations will lend support
to the market.
President-elect Park Geun-hye is set to take office on
Monday, and investors are keen to see if the country's first
female president will roll out new policy measures to lift
Asia's fourth-biggest economy.
"Expectations are also growing that the incoming government
will introduce strong stimulus measures following the recent
nomination of its Cabinet members," Kim said.
The Korea Composite Stock Price Index (KOSPI)
finished up 0.2 percent at 1,985.83 points on Tuesday, its
highest closing level since Jan. 22, propped up by foreign
buying.
--------------------MARKET SNAP SHOT @22:33 GMT-------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1,530.94 0.73% 11.150
USD/JPY 93.55 -0.01% -0.010
10-YR US TSY YLD 2.028 -- 0.023
SPOT GOLD $1,604.30 0.01% 0.090
US CRUDE $96.66 0.83% 0.800
DOW JONES 14035.67 0.39% 53.91
ASIA ADRS 138.16 1.33% 1.81
------------------------------------------------------------->M&
A deal lift Wall Street shares near a record high
>U.S. bond prices fall as stock gains pare bids
>Yen climb broadly after finance minister's comments
>Oil rises, following U.S. equities higher
---STOCKS TO WATCH---

**HYUNDAI MOTOR **
The South Korean car maker said it expects to keep the 3.5
percent share in Europe the brand enjoyed in 2012, although the
market is set to shrink by 3-5 percent.

(Reporting by Hyunjoo Jin; Editing by Edwina Gibbs)