(Updates to mid-morning)
SEOUL, Jan 11 (Reuters) - Seoul stocks gained 0.4 percent on
Friday, as POSCO rose following forecasts of better 2008
earnings, while exporters advanced after the U.S. Federal Reserve
signalled aggressive rate cuts to stave off a recession.
POSCO (005490.KS), the world's fourth-largest steel maker,
added 1.29 percent to 550,000 won after it forecast an 12 percent
rise in operating profit this year late on Thursday even as it
suffered a drop in fourth-quarter profit. [ID:nSEO231568]
While fears of a recession in South Korea's second-biggest
export market remain intact, investors seem to be immune to bad
news amid perception markets have priced in the risk, analysts
said.
"Now the market is expecting the Federal Reserve will almost
surely cut interest rates at the end of the month," said Park
Seung-hun, an analyst at Woori Investment & Securities.
"Because expectations for fourth-quarter earnings have been
drastically lowered in the aftermath of the U.S. subprime
mortgage meltdown, earnings coming in line with expectations
could bring about a relief rebound."
Samsung Electronics Co Ltd (005930.KS), South Korea's most
valuable company, is expected to report sluggish profits on
Tuesday but analysts are betting on a stronger year in 2008.
The Korea Composite Stock Price Index was up 0.3
percent to 1,830.19 points as of 0156 GMT.
Federal Reserve Chairman Ben Bernanke on Thursday
acknowledged the economy faces increased risks and indicated the
U.S. central bank is ready to cut interest rates aggressively to
support growth. [ID:nN10198225]
The outlook, combined with growing optimism the Bush
administration would come up with measures to boost the economy,
helped buoy exporters, including Hyundai Motor Co (005380.KS)
which added 1.18 percent to 68,400 won.
Hynix Semiconductor Inc (000660.KS), the world's
second-largest chip maker, gained 3.43 percent to 24,100 won.
(Reporting by Kim Soyoung; Editing by Keiron Henderson)
