September 2, 2013 / 11:52 PM / 4 years ago

Seoul shares seen up as euro zone, China raise optimism on global economy

SEOUL, Sept 3 (Reuters) - Seoul shares are set to rise on
Tuesday after upbeat Chinese and euro zone manufacturing data
added to signs that the global economy is on a firmer footing.
    Analysts say the delay in a potential U.S.-led military
strike against Syria should also underpin the market, but expect
the upside to be limited ahead of a key U.S. jobs report on
Friday.
    European shares rose overnight, buoyed by enhanced euro zone
manufacturing activity for August, which followed two separate
China factory activity reports over the weekend and on Monday
that showed encouraging growth for the same month.
  
    China and Europe are key export markets for South Korea.
   "Initially the market will reflect on the euro zone's data
but cues ahead may limit the extent of foreign inflows and cap
market gains," said Hi Investment & Securities analyst Kim
Seung-han, referring to Friday's U.S. job data that could
provide clues on when the U.S. Federal Reserve will begin
rolling back its bond-buying stimulus programme. 
    Kim said foreign buying has been the main driver of the
market's recent gains as they were net buyers of 1.4 trillion
won ($1.27 billion) worth of local shares last week, when the
main index rose 3 percent to post the best weekly gain so far
this year.
    Despite a sharp drop in inflows, foreign investors remained
net buyers of 56.8 billion won worth of local shares for a
seventh straight session on Monday.    
    Global markets were also unwinding much of last week's
safe-haven trades as worries about an imminent military strike
against Syria eased after U.S. President Barack Obama decided to
seek congressional approval. 
    The Korea Composite Stock Price Index (KOSPI) ended
down 0.1 percent at 1,924.81 points on Monday. 


       
--------------------MARKET SNAPSHOT @ 22:37 GMT ----------------
                    INSTRUMENT       LAST     PCT CHG    NET CHG
S&P 500                   1,632.97      -0.32%     -5.200
USD/JPY                      99.42       0.09%      0.090
10-YR US TSY YLD        2.789        --        0.000
SPOT GOLD                $1,391.11      -0.23%     -3.180
US CRUDE                   $106.78      -0.81%     -0.870
DOW JONES                 14810.31      -0.21%     -30.64
ASIA ADRS                  136.57      -0.99%      -1.36
----------------------------------------------------------------
>Futures higher as concerns over Syria ease                 
>Price little changed weak data, Syria risk before holiday 
>Dollar near one-month high vs yen on waning risk aversion 
>Oil ekes gain, reversing early rout on easing Syria risk  
    STOCKS TO WATCH
    Samsung Heavy Industries Co Ltd 
    The shipbuilder said on Monday it won an order worth 446.5
billion won ($405.74 million)to build two liquefied natural gas
ships by March 2017 for Flex LNG Ltd. It also won a
deal worth 610.3 billion won with an unidentified shipper in
Oceania. 
    
    LS NETWORKS CORP LTD 
    LS Networks announced on Monday it signed a 52.1 billion won
($47.34 million) worth nickel Ore supply contract with China's
Shanxi refinery.
($1 = 1100.4500 Korean won)

 (Reporting by Jungmin Jang; Editing by Shri Navaratnam)

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