October 21, 2012 / 11:36 PM / 5 years ago

Seoul shares seen dropping after U.S. earnings shock

3 Min Read

SEOUL, Oct 22 (Reuters) - Seoul shares are likely to open
sharply lower on Monday after U.S. stocks slid as results from
General Electric and McDonald's added to fears of a
disappointing earnings season. 
    "The U.S. earnings shock will drag down the market. As local
corporate earnings are unlikely to provide a boost, the KOSPI
may fall to near 1,900-mark," said Ryu Yong-seok, an analyst at
Hyundai Securities. 
     U.S. stocks had their worst day since late June on Friday
after General Electric and McDonald's, barometers of the overall
economy, added to a disappointing earnings season. 
    Several bluechip companies, such as POSCO and
Hyundai Motor will announce third quarter earnings
this week, which the markets expect will disappoint.
    The Korea Composite Stock Price Index (KOSPI) fell
0.78 percent to close at 1,943.84 points on Friday.
------------------MARKET SNAPSHOT @ 22:28 GMT-------------------
S&P 500                1,433.19     -1.66%     -24.150
USD/JPY                   79.28     -0.03%      -0.020
10-YR US TSY YLD     1.766      --          0.000
SPOT GOLD             $1,718.55     -0.08%      -1.440
US CRUDE                 $89.67     -0.42%      -0.380
DOW JONES              13343.51     -1.52%     -205.43
ASIA ADRS               120.69     -1.27%       -1.55
>GE, McDonald's give Wall St a black eye           
>Prices gain with rising appetite for low-risk     
>Euro slips vs dollar as uncertainty on Spain      
>Oil falls on economic fears, pipeline restart     

    LG Chemicals said on Friday its operating profit
for the third quarter had shrunk 17 percent compared to the same
period last year. 
    Hyundai Motors will release its third quarter
results this week. Shares in the carmaker have been dogged in
October by worries that the company's earnings may disappoint
because of recent labour strikes at South Korean plants. A
smaller-scale strike may be called by temporary workers on

 (Reporting By Somang Yang; Editing by Richard Pullin)

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