Seoul stocks lose steam on U.S. slowdown worries

(Updates to afternoon)

SEOUL, March 14 (Reuters) - Seoul stocks opened 1.37 percent
higher on Friday but quickly lost the early gains on continued
worries about a U.S. economic slowdown and credit market health.

The initial rise came after a major rating agency said an end
to subprime mortgage-related writedowns may be in sight.

"Howver, investor sentiment is still very fragile. There are
plenty of uncertainties in the overall economy and
financial markets," said Kim Joong-hyun, an analyst at
Goodmorning Shinhan Securities.

"You never know when the next lender or a financial firm will
say they have a money problem," he added.

Meanwhile, won currency hit a 26-month-low against the dollar
on Friday.

The Korea Composite Stock Price Index was up 0.08 percent at
1,616.73, off the interday high of 1,638.66 as of 247 GMT.

(Reporting by Park Jung-youn; Editing by Jonathan Thatcher)