Seoul shares gain led by exporters

(Updates to mid-morning)

SEOUL, May 29 (Reuters) - Seoul shares opened higher
on Thursday, led by exporters such as Samsung Electronics
(005930.KS), which were buoyed by a U.S. report pointing to
strong business spending in South Korea's second-biggest export
market.

Shares in Samsung Electronics advanced 2.89 percent to
712,000 won, boosted further by Nomura's decision to upgrade its
rating on the stock from "neutral" to "buy" on improving DRAM
fundamentals and favourable forex rates.

The Korea Composite Stock Price Index was up 1.33 percent to
1,829.69 points as of 0029 GMT, about 3.8 percent away from its
2008 intraday peak of 1,901 reached May 19.

"The surprising strength in the U.S. gauge of business
investment has lifted market sentiment, and we are seeing gains
in exporters today, with foreigners net buying for the second day
in a row," said Lee Sun-yeob, a market analyst at Goodmorning
Shinhan Securities.

"But the trading volume is relatively light, as investors are
still unsure about oil price trends, and as more U.S. economic
data is due later this week," Lee added.

Other technology bellwethers such as LG Electronics
(066570.KS) also gained, tracking Wall Street peers such as IBM
(IBM.N) and Hewlett-Packard Co (HPQ.N), which rose after a U.S.
government report on orders for durable goods -- long-lasting
manufactured items -- showed a surprising jump in business
investment last month.[ID:nN28333532]

LG Electronics, the world No.4 handset maker, was up 3.36
percent to 138,500 won and Hynix Semiconductor (000660.KS), the
No.2 memory chip maker, climbed 1.02 percent to 29,750 won.

Oil's rebound to above $130 a barrel continued to weigh on
energy-price sensitive transportation and tourism shares such as
Korean Air Line (003490.KS) and Hana Tour (039130.KQ).

Shares in South Korea's top air carrier were down 0.4 percent
to 50,300 won, and Asiana Airlines (020560.KS) was down 1.38
percent to 5,730 won.

Leading on- and off-line travel agency Hana Tour was down
1.28 percent to 54,200 won, and its smaller rival Modetour
(080160.KQ) was down 3.06 percent to 31,700 won.

Shares in South Korea's top carmaker Hyundai Motor
(005380.KS) rebounded after four consecutive losses, rising 0.86
percent to 82,500 won after the company said on Wednesday it
would sell its first luxury car, the Genesis, for a base price of
$33,000 in the United States.[ID:nN28398247]

Kia Motors (000270.KS) was also up 0.84 percent to 12,050
won.