* Foreigners continue selling, but amount modest
* Financial and construction sectors lead index rise
* KRX suspends trading for Tongyang and its subsidiaries
SEOUL, Jan 29 Seoul shares rose on Wednesday
morning as a bold interest rate hike by Turkey soothed risk
sentiment ahead of a long weekend, while investors awaited the
outcome of a key policy meeting by the U.S. Federal Reserve.
Local stock markets will be closed on Thursday and Friday
for the Lunar New Year holiday, and will reopen on Monday.
The Korea Composite Stock Price Index (KOSPI) was up
0.6 percent at 1,929.30 points as of 0205 GMT, extending a
recovery from Monday's 1.6 percent fall.
"The market is reaching back to the levels of the
pre-emerging markets jitters before the holidays and Fed meeting
as related concerns have somewhat alleviated overnight," said
Kim Byung-yeon, an analyst at Woori Investment & Securities.
Later in the global day, the Fed's two-day policy meeting
comes to an end, at which it is widely expected to trim its
asset-buying programme by another $10 billion a month.
On Tuesday, Turkey followed India by raising interest rates
at a midnight meeting of its central bank, stirring hopes that
the move would short-circuit a vicious cycle of selling in
emerging markets and revive risk appetite in the developed
Although foreigners continued to position as net sellers by
offloading a net 17.7 billion won ($16.3 million) worth of KOSPI
shares by mid-morning, the amount was modest compared with the
previous four sessions where they sold a combined 1.1 trillion
Advancers outnumbered decliners 539 to 216 in mid-morning
trading, with financials and builders leading broad market
gains. Hana Financial Group Inc rose 2 percent while
Woori Finance Holdings Co Ltd gained 3 percent.
Samsung Engineering Co Ltd jumped 6.6 percent
after announcing bullish October-December quarter earnings on
Tuesday. It recorded an operational profit for the first time in
Samsung Life Insurance Co Ltd advanced 3.5
percent following a regulatory filing on Tuesday, that reported
the repurchase of its own shares worth nearly 200 billion won.
Meanwhile, the Korea Exchange (KRX) said on Tuesday that
Tongyang Inc and its subsidiaries Tongyang Network
Corp, Tongyang Cement & Energy Corp had
been placed under a trading suspension from Wednesday to Feb.
The KRX said in a statement it plans to tighten screening
for listing eligibility after some of the group's executives
were indicted by the Seoul Prosecutor's Office on alleged
charges of embezzlement and breach of trust.
Executives at Tongyang Inc could not be immediately reached
for comment. A Tongyang Cement executive from the public
relations department said it had not yet received notice from
its parent about the matter.
The KOSPI 200 benchmark of core stocks was up 0.7
percent, while the junior KOSDAQ gained 0.9 percent.
($1 = 1083.7000 Korean won)
(Reporting by Jungmin Jang; Editing by x)