* KOSPI down 0.4 pct at 1,936.76 points
* Automakers up as Hyundai Motor union agrees to resume work
* Chemicals lose ground as OCI says Suntech orders cancelled
SEOUL, April 29 South Korean shares fell on
Monday as weaker-than-expected U.S. gross domestic product data
weighed on investor sentiment.
The Korea Composite Stock Price Index (KOSPI)
slipped 0.4 percent to 1,936.76 points as of 0211 GMT.
"I have a conservative view of the global economy in the
current quarter, and with South Korea's stimulus struggling to
gain traction here, South Korean companies will suffer at home
and abroad," said Park Hyeong-joong, an analyst at Meritz
Automakers bucked the trend, however, after Hyundai Motor's
labour union agreed to restart weekend production
from this week following output stoppages in March and April
over wages that hit sales and earnings.
Hyundai gained 1.8 percent, while Kia Motors
rose 3 percent.
"There are expectations that automakers' profitability would
improve in the second quarter, with increased domestic
production and utilization rates," said Jang Moon-soo, an
analyst at Eugene Investment & Securities.
OCI slumped after the chemicals firm said on
Friday that three polysilicon orders worth 1.46 trillion Korean
won ($1.31 billion) from units of China's solar panel maker
Suntech Power Holdings Co Ltd were cancelled because of
the latter's financial troubles.
OCI was down 4.5 percent by late morning, after falling as
much as 9.5 percent earlier in the day, leading losses in the
Telecom firms, seen as defensive stocks, gained ground, with
LG Uplus up 4.8 percent and SK Telecom
gaining 3.1 percent.
(Reporting by Hyunjoo Jin; Editing by Kim Coghill)