(Updates to midmorning)
* KOSPI rebounds on back of robust global data
* Foreigners set to turn net buyers after 5 days of selling
* Mobile carriers rally to underpin broad market gains
By Jungmin Jang
SEOUL, Dec 17 Seoul shares rebounded from a
three-month closing low on Tuesday morning, tracking global
markets after upbeat data from the United States and Europe
spurred optimism about the global economy, while investors
awaited a key Federal Reserve meeting this week.
The Korea Composite Stock Price Index (KOSPI) was up
0.7 percent at 1,975.14 points by 0136 GMT, on track to halt a
five-day losing streak.
"Signs of a brighter global economic outlook are providing a
reason for short-covering, but fluctuation in the market is
still expected with the Fed's tapering decision to be unveiled
in a couple of days," said Kim Byung-yeon, a market analyst at
Woori Investment & Securities.
Investors are awaiting the outcome of Fed's Dec. 17-18
policy meeting to see when it will start reducing its $85
billion monthly bond-purchasing stimulus.
U.S. manufacturing output rose for a fourth straight month
in November while a gauge of euro zone business activity rose in
December to its second-highest reading since mid-2011, boosting
Wall Street and European stocks overnight.
Foreign investors purchased a net 14.6 billion won ($13.9
million) worth of KOSPI shares near midsession, poised to snap
five straight sessions of net selling.
Advancers outnumbered decliners 447 to 303, with
shipbuilders leading gains for a second straight day.
The shipbuilding subindex rose more than 3
percent buoyed by Hyundai Heavy Industries Co Ltd
and Samsung Heavy Industries Co Ltd, which advanced
3.5 percent and 4.2 percent, respectively.
Telecommunications shares also outperformed with KT Corp
, the country's second-largest mobile carrier, up 1.2
percent after nominating former Samsung Electronics Co Ltd
president Hwang Chang-gyu as its new CEO. KT shares have lost
9.5 percent so far this month after the company cut its year-end
dividend plan citing decreased earnings.
Top mobile carrier SK Telecom Co Ltd gained 2
percent and third-ranked LG Uplus Corp added 1
Naver Corp, the country's largest search portal
operator, rose 4 percent to become the sixth-largest KOSPI
component on strong foreign buying.
Daewoo Engineering & Construction Co Ltd plunged
8.1 percent after the Financial Supervisory Commission said it
would inspect the company's accounting practices over alleged
violations. A Daewoo Engineering official said the company has
not been contacted by the FSC and was awaiting further
Korea Gas Corp dropped 5.7 percent after the
company cut its full-year outlook due to asset impairment losses
from the development of gas fields in Canada.
The strength in large-caps helped lift the KOSPI 200 index
of core stocks up 0.9 percent. The tech-heavy junior KOSDAQ
edged up 0.2 percent.
($1 = 1051.6000 Korean won)
(Editing by Chris Gallagher)