S.Korea shares may rise on foreign buying; Syria tensions could cap gains

Mon Aug 26, 2013 7:37pm EDT

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SEOUL, Aug 27 (Reuters) - Seoul shares may open higher on
Tuesday, likely helped by  foreign buying in cyclical stocks on
the back of recent upbeat global data, but a potential U.S.
missile strike against Syria over the alleged use of chemical
weapons could temper buying activity.  
    Global markets declined overnight after U.S. Secretary of
State John Kerry signaled a possible military response to
Syria's use of chemical weapons.  
    Orders for long-lasting U.S. manufactured goods recorded
their biggest drop in nearly a year in July, data on Monday
showed, easing worries that the Federal Reserve will start to
trim its stimulus next month. 
    "The market still has room to rise," said Kim Yong-goo,
market analyst at Samsung Securities. "Though the extent of
gains will be limited by the Syria issue, eased concerns on
Fed's September tapering will push the market upwards."   
    Kim tipped chemical, shipyard, and construction shares to
lead the rise on the main index as recent data suggested the
global economy is on a firmer footing. Foreign buying should
support the market, but inflows could weaken after a light
trading day in Wall Street, he said.
    Foreign investors were net buyers of 183.8 billion won
($165.19 million) worth of local shares on Monday.
    The Korea Composite Stock Price Index (KOSPI) rose
1.0 percent to 1,887.86 points on Monday, the highest closing
level since Aug. 19.

------------------ MARKET SNAPSHOT @ 22:38 GMT -----------------
                  INSTRUMENT      LAST      PCT CHG      NET CHG
S&P 500                1,656.78        -0.4%       -6.720
USD/JPY                   98.42       -0.08%       -0.080
10-YR US TSY YLD     2.787         --          0.000
SPOT GOLD             $1,401.74       -0.19%       -2.660
US CRUDE                $106.17        0.24%        0.250
DOW JONES              14946.46       -0.43%       -64.05
ASIA ADRS               139.18       -0.74%        -1.03
----------------------------------------------------------------
>Wall St falls after Kerry blasts Syria on chemical weapon 
>Government bond prices gain on weaker economic data       
>Dollar edges up as Fed debate shifts to size of pullback 
>Brent oil hits 5-mth high on Syria,settle lower on US data 
    STOCKS TO WATCH
    COWAY CO LTD 
    South Korean living goods maker's largest shareholder MBK
Partners, a private equity firm, agreed to purchase ING Groep's
 South Korean insurance unit for 1.84 trillion won
($1.65 billion), ING Groep said in a statement on
Monday. 

($1 = 1112.6500 Korean won)

 (Reporting by Jungmin Jang; Editing by Shri Navaratnam)
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