(Updates to mid-morning)
SEOUL, June 16 (Reuters) - Seoul shares traded higher on
Monday led by exporters such as Samsung Electronics (005930.KS),
which were supported by muted U.S. consumer price data and easier
oil prices.
Samsung Electronics and LG Electronics (066570.KS) rose after
U.S. consumer price data showed that core prices remained tame in
South Korea's second-largest export market, easing inflation
worries and fears of a dramatic rate hike by the U.S. Federal
Reserve.
Samsung Elec rose 1.48 percent to 684,000 won and LG Elec
went up 2.21 percent to 139,000 won.
Other major manufacturers such as Hyundai Motor (005380.KS)
and Kia Motors (000270.KS) also advanced, with Hyundai Motor up
3.02 percent to 82,000 won and Kia Motors up 3.36 percent to
12,300 won.
The Korea Composite Stock Price Index was up 1.01
percent to 1,765.00 as of 0058 GMT, but still down 4.7 percent on
the month after its recent sharp losses.
"The market's regaining momentum after steep losses, further
supported by easing oil prices and softer-than-expected U.S.
consumer price data over the weekend," said Park Seok-hyun, a
market analyst at Eugene Investment & Securities.
Eyes are on oil trading in the U.S. tonight as Saudi Arabia
is set to increase crude supply, Park added.
"Also comments about support for a strong dollar during G8
summit are acting as a positive factor, as stronger dollar will
keep energy prices in check while helping exporters," said Juhn
Chong-kyu, a market analyst at Samsung Securities.
U.S. Treasury Secretary Henry Paulson repeated on Saturday
that he backed a strong dollar.[ID:nTKN002936]
Softer oil lifted airlines such as Korean Air Line
(003490.KS) after U.S. crude futures CLc1 settled at $134.86 a
barrel, well off the recent peak above $139 a barrel.
Korean Air climbed 3.81 percent to 51,800 won and Asiana
Airlines (020560.KS) gained 2.32 percent to 5,740 won.
Shipbuilders rebounded after sharp falls on Friday, with the
gains led by Daewoo Shipbuilding & Marine Engineering (042660.KS)
on revived M&A talk, after media reports that Hanwha Group was
planning to raise the funds necessary to buy the company by
listing its construction and life insurance units.
Daewoo Shipbuilding shot up 5.87 percent to 41,500 won and
Hyundai Heavy Industries (009540.KS) rose 2.26 percent to 339,500
won.
Financials also rose, tracking their U.S. peers' rally on
Friday, with Kookmin Bank 060000.KS up 1.45 percent to 62,900
won and Shinhan Financial Group (055550.KS) up 3.68 percent to
47,950 won.
