* KOSPI rises 2 pct
* Investors calm despite North Korea rocket fueling report
* Memory chip issues rise on improving outlook
(Updates to mid-morning)
By Jungyoun Park
SEOUL, April 2 (Reuters) - Seoul shares rose on Thursday
after gains on Wall Street on U.S. data that pointed to a
moderating economic downturn, with investors shrugging off
reports North Korea had begun fueling a long-range rocket.
The Korea Composite Stock Price Index was up 2.02
percent at 1,258.18 as of 0104 GMT, rising for a third
consecutive session and hitting its highest intraday level since
October 16.
"Sentiment has improved on expectations that a liquidity
rally is near on the latest monetary easing by global central
banks. Also the latest batch of domestic and U.S. economic
indicators show the real effects of aggressive economic stimulus
measures are taking shape," said Lee Kyoung-su, a market analyst
at Taurus Investment & Securities.
Reports showed the contraction in U.S. factory activity
slowed in March, and U.S. construction spending fell at a
slower-than-expected rate in February. [ID:nN01407201]
Meanwhile investors largely ignored news that North Korea had
begun fueling a long-range rocket it plans to launch between
April 4-8, starting a process that experts say means the rocket
will be ready for lift-off in three to four days. [ID:nSEO72388]
"Yes, the North will probably launch the missile, and that
certainly can't be good. But markets will probably bounce back
after a couple days as they always do...market participants have
learned over time to remain calm to North Korea-related
developments," Lee added.
Gains were led by technology issues including memory chip
makers Hynix Semiconductor (000660.KS) and Samsung Electronics
(005930.KS).
"It is only a matter of time before the DRAM contract prices
rise in April and May," said Jay Kim, an analyst at Hyundai
Securities in a note on Thursday.
"[Memory chip] demand will gradually rise in the second half
of this year, and share price gains are only reflecting that,"
Kim said, raising the target price on Hynix to 16,000 won from
the previous 13,000 won.
Samsung Elec was up 1.58 percent and Hynix jumped 4.9 percent
to 12,900 won.
Banks also continued rising on the back of easing sectoral
worries, and on the won currency's KRW= continued
stabilisation.
KB Financial Group (105560.KS) advanced 3.77 percent and
Shinhan Financial Group (055550.KS) climbed 4.08 percent.
North Korea-sensitive issues gained despite the rocket
fueling reports. Romanson (026040.KQ), a watchmaker with
production cites in Kaesong industrial park, was up 4.04 percent.
Shipbuilders also outperformed on the back of the latest
economic data. Daewoo Shipbuilding & Marine Engineering
(042660.KS) was up 4.23 percent and STX Shipbuilding (067250.KS)
advanced 6.37 percent.
(Editing by Jonathan Hopfner)
