Seoul shares up led by techs; Samsung, Hynix gain

(Updates to mid-morning)

SEOUL, May 2 (Reuters) - Seoul shares rose on Friday led by
technology issues such as Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz) and
Hynix Semiconductor, tracking an overnight rally in their U.S.
peers and lifted by an improving memory chip market outlook.

Samsung Electronics rose 2.4 percent to 728,000 won and Hynix
(000660.KS: Quote, Profile, Research, Stock Buzz) gained 2.43 percent to 27,450 won, after U.S.
technology bellwethers such as Intel (INTC.O: Quote, Profile, Research, Stock Buzz) gained 4.6 percent
on Thursday.

A four percent gain in the Philadelphia Semiconductor Index
on Thursday also boosted sentiment for the shares,
analysts said.

The Korea Composite Stock Price Index was up 1.22 percent at
1,847.48 points as of 0201 GMT to a near-4-month intraday high,
buoyed by falling energy costs and a rising dollar, which bodes
well for spending power in South Korea's No.2 export market.

"Retreating oil and raw material prices have eased worries
about inflation, which had cast shadow over shares lately," said
Lee Sun-yeob, a market analyst at Goodmorning Shinhan Securities.

"The dollar's rising strength is also positive for the market
as it stokes foreigners' purchasing appetite," he added.

Financials were also boosted by a rise in their Wall Street
peers on Thursday, following Wednesday's widely expected U.S.
interest rate cut, although gains were tempered by expectations
of lacklustre domestic bank results on Friday.

Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) rose 3.43 percent to 72,300 won and
Shinhan Financial (055550.KS: Quote, Profile, Research, Stock Buzz) gained 1.9 percent to 59,000 won.

"U.S. banks rallied after the U.S. Fed's rate cut on Thursday
and on strengthening view that the worst of credit crisis is
over," said Koo Kyung-hwee, an analyst at Hyundai Securities.

The Bank of England said on Thursday that the scale of losses
and the economic fallout from the credit crunch may not be as bad
as feared and subprime write-offs could end up costing less than
half market forecasts.[ID:nL30906875]

Shipbuilders rose across the board as retreating raw material
prices eased worries about manufacturing costs.

Samsung Heavy Industries Co Ltd (010140.KS: Quote, Profile, Research, Stock Buzz), the world's
second-largest shipbuilder rose 7.04 percent to 36,500 won after
the company said on Thursday it has won a $942 million order to
build a drill ship for Sweden's Stena AB.[ID:nSEL000065]

Daewoo Shipbuilding & Marine Engineering (042660.KS: Quote, Profile, Research, Stock Buzz) rose
4.01 percent to 45,400 won, and Hyundai Heavy Industries
(009540.KS: Quote, Profile, Research, Stock Buzz) advanced 3.35 percent to 370,000 won.

Carmakers such as Hyundai Motor (005380.KS: Quote, Profile, Research, Stock Buzz) also rose ahead
of their sales data expected later on Friday. Hyundai Motor rose
1.77 percent to 86,100 won and Kia Motors (000270.KS: Quote, Profile, Research, Stock Buzz) advanced
0.75 percent to 13,450 won.

(Reporting by Park Jung-youn; Editing by Keiron Henderson)