(Updates to mid-morning)
SEOUL, Dec 24 (Reuters) - Seoul stocks rose 1.7 percent to
surpass 1,900 points on Monday, after better-than-expected U.S.
spending data eased worries about a recession in South Korea's
No.2 export market, buoying exporters such as LG Electronics.
Financial stocks, led by top lender Kookmin Bank, extended a
recent bull run after reports of a possible foreign investment in
Merrill Lynch MER.N boosted appetite for banking stocks.
[ID:nN21264337]
"The investment climate has turned favourable both at home
and abroad," said Lee Sun-yup, an analyst at Goodmorning Shinhan
Securities.
"Fears of a U.S. economic recession are easing after strong
earnings reports from U.S. technology bellwethers, bullish
consumer spending data and a series of investments in global
banks by sovereign funds."
The Korea Composite Stock Price Index (KOSPI) rose
1.67 percent to 1,910.86 points as of 0032 GMT.
U.S. consumer spending rose at the fastest rate in more than
two years in November and prices also climbed sharply, according
to a government report on Friday that showed the economy was on
firmer ground than many had believed. [ID:nN21255598]
That has helped U.S. stocks jump the most in three weeks on
Friday, and domestic investors also took heart from the Wall
Street performance, snapping up exporters that had been hit hard
by recession worries in the world's largest economy.
LG Electronics Inc (066570.KS), the world's fifth-biggest
mobile phone maker, gained 2.91 percent to 106,000 won, and flat
screen maker LG.Philips LCD Co Ltd (034220.KS) jumped 4.13
percent to 47,900 won.
The world's top memory chip maker, Samsung Electronics Co Ltd
(005930.KS), also advanced 1.43 percent to 568,000 won.
Financial shares also extended gains, with Kookmin Bank
060000.KS rising 1.43 percent to 70,900 won, tracking global
peers heartened by reports that Merrill Lynch may get a big
foreign investment.
Growing expectations that a pro-market incoming government
under president-elect Lee Myung-bak would scrap a rule
prohibiting conglomerates from owning domestic banks and bring
about deregulation in the financial sector also continued to prop
up those stocks.
Woori Financial Group (053000.KS) rose 1.79 percent to 19,900
won, while Samsung Securities Co (016360.KS) jumped 3.83 percent
to 89,400 won.
But Korean Air (003490.KS), South Korea's top airline, fell
1.21 percent to 73,300 won after oil prices jumped on the strong
U.S. spending report, raising concerns over jet fuel costs.
(Reporting by Kim Soyoung; Editing by Sei Chong)
