* KOSPI falls 0.26 percent, but trims earlier 1.6 pct loss
* Defence issues rally after North Korea missile news
* Techs up on favourable product pricing, earnings hopes
(Updates to mid-morning)
By Jungyoun Park
SEOUL, July 3 (Reuters) - Seoul shares fell on Friday after
bleak U.S. jobs data and as North Korea's firing of short-range
missiles weighed on sentiment, but shares trimmed earlier losses
of as much as 1.6 percent supported by defence and tech issues.
The Korea Composite Stock Price Index (KOSPI) was
down 0.26 percent at 1,407.76 points as of 0143 GMT.
"U.S. jobs data dented brewing hopes of an economic
turnaround, but share losses were limited as investors here did
not necessarily take it as a sign of a further slowdown of global
economies. Belief that economic fundamentals are near their
bottom is still firm here," said Won Jong-hyuck, a market analyst
at SK Securities.
U.S. employers cut 467,000 jobs in June, far more than
expected while the unemployment rate rose to 9.5 percent, the
government said in a report that showed a labour market
continuing to struggle with a deep recession. [ID:nN01210643]
"News of North Korea's short-range missile launch has limited
impact on markets as participants view it as a political issue
with limited implications for stocks markets, for now," Won
added.
North Korea test-fired four short-range missiles on Thursday,
further stoking already high regional tension due to its nuclear
test and threats to boost its nuclear arsenal in response to UN
sanctions.[ID:nSEO208700]
Shares in defence issues including Huneed Technologies
(005870.KS) and Victek (065450.KQ) rallied after the North Korean
missile tests news.
Huneed, a manufacturer of wireless communications equipment
for military purposes, was up 3.88 percent and Victek, a maker of
military equipment parts, jumped 6.01 percent.
But shares in energy issues declined across the board after a
near 4 percent loss in U.S. crude futures overnight, fuelling
worries about crude product demand.
SK Energy (096770.KS), South Korea's top crude refiner, fell
0.62 percent, and GS Holdings, holding company of South Korea's
No. 2 crude refiner GS Caltex, fell 1.01 percent.
Meanwhile, key technology issues including Hynix
Semiconductor (000660.KS) and LG Display (034220.KS) rose amid
earnings hopes for South Korean tech firms.
Hynix Semiconductor gained 1.71 percent after key DRAM memory
chip spot prices advanced in a range of 1 to 2 percent, according
to DRAMeXchange, an electronic parts research firm.
LG Display, the world's No. 2 maker of liquid crystal display
(LCD), climbed 2.93 percent.
"Thanks to steadily robust demand for LCDs, LG Display's
earnings are expected to come out solid in both the second and
third quarter," said Lee Sung-joon, an analyst at SK Securities.
(Editing by Jacqueline Wong)
