Seoul shares lifted by U.S. data, cheaper oil

(Updates to mid-morning)

SEOUL, May 30 (Reuters) - Seoul shares traded
slightly higher on Friday, with gains by exporters on
better-than-expected U.S. GDP data and a sharp fall in oil prices
outweighing losses by refiners such as SK Energy (096770.KS).

Shares such as LG Electronics (066570.KS) rose after U.S.
economic growth data beat market estimates, easing fears of a
recession in South Korea's second-largest export market.

LG Elec rose 1.41 percent to 143,500 won and a No.2 LCD
manufacturer LG Display (034220.KS) climbed 2.3 percent to 44,500
won.

The Korea Composite Stock Price Index was up 0.21 percent to
1,845.68 points as of 0145 GMT, up 1 percent on May but still 3
percent away from the yearly intraday peak reached this month of
1,901.

"Fears about inflation have eased a bit after oil's sharp
decline on Thursday, and U.S. markets' gains overnight have also
lifted sentiment," said Kim Joong-hyun, a market analyst at
Goodmorning Shinhan Securities.

"Gains are limited after yesterday's rally. It will take some
time before the index can settle above 1,850 as the market
environment still remains fragile," said Lee Woo-hyun, a market
analyst at Kyobo Securities.

Oil refiners such as SK Energy (096770.KS) and GS Holdings
(078930.KS), which have surged around 20 percent since mid-May,
shed some of their recent advances.

SK Energy was down 1.19 percent to 124,500 won and GS
Holdings fell 2.4 percent to 46,750 won.

But transportation shares such as Korea Air Line (003490.KS)
and Asiana Airlines (020560.KS), which had been battered in
recent weeks by high oil prices, got a boost after oil's CLc1
retreat on Thursday to below $127 a barrel.

Korean Air Line was up 1.54 percent to 52,600 won and Asiana
Airlines rose 1.02 percent to 5,950 won.

Meanwhile brokerages rallied on the back of more merger and
acquisition talk in the sector, after Hyundai Heavy Industries
(009540.KS) said it plans to buy two financial units from CJ
Group.

Golden Bridge Securities (001290.KS) advanced 2.92 percent to
3,700 won and SK Securities (001510.KS) was up 2.07 percent to
2,960 won.

The brokerage sub-index .KS53 was up 1.95 percent.

Shipbuilders also continued their rally thanks to a steady
flow of new ship orders, with Samsung Heavy (010140.KS) up 2.34
percent to 43,700 won and STX Shipbuilding (067250.KS) up 0.99
percent to 40,650 won. Hyundai Heavy was up 0.81 percent at
374,000 won.