*KOSPI down 0.6 pct
*Shares trade lower after Tuesday's bounce from steeper loss
*U.S. senate vote on Wednesday night eyed, analysts say
(Updates to midmorning)
By Park Jung-youn
SEOUL, Oct 1 (Reuters) - Seoul shares traded slightly lower
on Wednesday after a firmer following a Wall Street bounce
overnight as U.S. lawmakers and President George Bush started
work to revive a $700 billion financial sector bailout plan.
Initial gains were quickly lost as shares had recovered much
of Tuesday's early 5.5 percent losses to end a mere 0.6 percent
lower in the previous session on expectations for the revival of
rescue plan talks, analysts said.
The Korea Composite Stock Price Index was down 0.59
percent at 1,439.73 points as of 0002 GMT.
"Investors here already bet for the resumption of bailout
talks yesterday, and we are seeing market participants taking a
more cautious stance today ahead of the vote tonight," said Kim
Hyoung-ryoul, a market analyst at NH Investment & Securities.
The U.S. senate agreed to vote on Wednesday on a $700 billion
financial bailout bill on Wednesday night that will include an
increase in the amount of bank deposits insured by the FDIC to
$250,000 from $100,000, a senate aide said on
Tuesday.[ID:nN30477494]
"Any pivotal news coming out during the session will
determine the market's direction," said Hong In-young, a market
analyst at HMC Investment & Securities.
Banking issues including Hana Financial Group (086790.KS)
gained after the previous session's losses as more investors bet
Washington will manage to salvage a package to stabilise the
financial sector after Monday's shock defeat.
Hana Financial Group was up 0.73 percent and Woori Finance
Holdings (053000.KS) gained 0.42 percent.
However some blue chip issues traded lower on persistent
caution in the markets, as investors remained anxious about the
outlook for the economy.
Samsung Electronics (005930.KS) was down 0.93 percent and LG
Electronics (066570.KS) was down 1.39 percent.
However shares in Kia Motors (000270.KS) rose after unionised
workers at South Korea's second-biggest auto maker, accepted a
fresh wage deal that calls for a 5.6 percent rise in base salary
and other incentives.[ID:nSEO362181]
Kia Motors was up 2.73 percent and bigger affiliate Hyundai
Motor (005380.KS) rose 1.9 percent.
(Editing by Keiron Henderson)
