* China's liberalisation of bank lending rates buoy
* Foreign investors turn net buyers
* Automakers lag on weaker yen after Japan's Abe wins
* Shipyards rally on recovery hopes
SEOUL, July 22 Seoul shares rose on Monday
morning, buoyed by news of China's decision to remove controls
on bank lending rates, with technology heavyweights like Samsung
Electronics Co Ltd leading gains.
At 0212 GMT, the Korea Composite Stock Price Index (KOSPI)
was up 0.7 percent at 1,884.99 points, snapping a two-day losing
"Two major global financial news over the weekend are
helping the market today. One being more liberal bank lending
rates, and second being G20 nations' vocal commitment to
economic support," said Park Jung-seop, a market analyst at
The People's Bank of China said on Friday it was removing
its floor on lending rates for commercial banks, meaning they
will now be able to cut rates as much as they see fit to attract
borrowers. The move raised hopes that cheaper credit will help
support the softening economy.
China is South Korea's biggest export market.
The Group of 20 nations pledged on Saturday to put growth
before austerity, seeking to revive a global economy that
"remains too weak" and adjusting stimulus policies with care so
that recovery is not derailed by volatile financial
Foreign investors were buyers of a net 60.3 billion Korean
won ($53.76 million) worth of stocks after two straight sessions
Technology heavyweights led early gains. Samsung
Electronics, the largest component on the main KOSPI, rose 1
percent, and LG Display Co Ltd advanced 1.9 percent.
On the negative ledger, CJ Group shares weakened on local
media reports the group is being investigated by the National
Tax Service following a local court's recent decision to order
the arrest of its chairman on charges of tax evasion and
A CJ Group spokesman confirmed the news when contacted by
CJ Cheiljedang Corp shares declined 0.4 percent
and CJ E&M Corp dipped 1.1 percent.
Shipyards rallied as latest string of new orders pointed to
a long-awaited improvement in the ailing sector.
Hyundai Heavy Industries Co Ltd rose 4.8
percent, Daewoo Shipbuilding & Marine Engineering Co Ltd
climbed 3.3 percent and Samsung Heavy Industries Co
Ltd jumped 2.3 percent.
Auto stocks underperformed as the Japanese yen inched lower
in Asia in early Monday trade, after a big win at the polls by
Japanese Prime Minister Shinzo Abe gave the green light for
prolonged monetary stimulus.
A weak yen tends to put South Korean exporters at a
disadvantage against their Japanese rivals in overseas markets.
Hyundai Motor Co were flat, while Kia Motors Corp
was up 0.2 percent.
Makers of baby clothes and infant care products rallied on
reports their sales jumped on robust demand by Chinese tourists
whose numbers have risen sharply this year.
Shares Agabang & Co and Boryung Medience Co Ltd
each jumped by their daily limit of 15 percent.
The KOSPI 200 benchmark of core stocks rose 0.9
percent, while the junior KOSDAQ edged 0.5 percent
($1 = 1121.7500 Korean won)
(Reporting by Jungyoun Park; Editing by Shri Navaratnam)