Seoul stocks up on solid export data, Samsung up

(Updates to mid-morning)

SEOUL, April 1 (Reuters) - Seoul stocks rose 0.6 percent by
midmorning on Tuesday, led by technology shares, after South
Korea posted stronger-than-expected March export figures,
boosting investor appetite for major exporter shares.

Shares of exporters such as Samsung Electronics (005930.KS: Quote, Profile, Research, Stock Buzz)
and LG Electronics (066570.KS: Quote, Profile, Research, Stock Buzz) were boosted by solid export data
suggesting that the firms may be relatively protected from a
U.S. slowdown thanks to sustained demand from emerging markets.

Samsung rose 2.09 percent to 636,000 won, also helped by
memory chip price rise anticipation, while LG Electronics gained
1.97 percent to 129,500 won,

The Korea Composite Stock Price Index rose 0.73 percent to
1,716.47 points by 0220 GMT, continuing a streak of gains which
has boosted the main index by nearly 4 percent over a week.

South Korea said on Tuesday exports in March rose by 19.1
percent from a year before, which came higher than an earlier
estimate of 17.3 percent by a Reuters poll forecast.
[ID:nSEV000363]

"It appears exports to the United States are not weakening as
sharply as expected. Demand from emerging markets remains solid
and the IT industry is holding up," said Goh You-sun, an
economist at Daewoo Securities.

Samsung's shares were aided by the company's announcement
that it is considering a single digit percent rise in its key
computer memory chips in April, a sign that the long suffering
memory market may finally recover. [ID:nSEO27209]

Hynix Semiconductor Inc (000660.KS: Quote, Profile, Research, Stock Buzz) rose 1.8 percent to
28,350 won, erasing earlier losses that brought the share down by
more than 3 percent, after Samsung's announcement.

NORTH KOREA CONCERN

Analysts voiced concern about North Korea's increasingly
aggressive stance towards the South after Pyongyang unleashed a
torrent of insults at newly-elected president Lee Myung-bak,
after last week test-firing a battery of short-range missiles.

"Some investors are concerned about the North Korean factor,"
said Y.S. Rhoo, a market analyst at Hyundai Securities. "If there
is another missile launch, for instance, it will highlight South
Korea's geopolitical risks."

Analysts said the main index's gains will be limited as many
investors remain cautious before the release of important
economic data this week from both South Korea and the U.S.,
particularly on the back of recent steep gains.

"Seoul shares have rebounded sharply over the past couple of
weeks and some investors are opting to take profit before the
data, while some are taking a wait-and-see stance," said Lee
Woo-hyun, a market analyst at Kyobo Securities.

"The Kospi will waver in and out of the low-1,700 level, as
it needs substantive indications of strengthening market
fundamentals," he added.

Holding companies such as Hanwha Corp (000880.KS: Quote, Profile, Research, Stock Buzz) and CJ Corp
(001040.KS: Quote, Profile, Research, Stock Buzz) gained on talk of regulatory changes which could make
it easier for industrial holding companies to own majority stakes
in financial firms.

Hanwha rose 10.11 percent to 57,700 won and CJ advanced 1.72
percent to 70,800 won.

(Reporting by Park Jung-youn; Editing by Marie-France Han and
Keiron Henderson)