Seoul stocks gain 0.9 pct on shipbuilders, banks

(Updates to mid-morning)

SEOUL, Feb 18 (Reuters) - Seoul stocks rose 0.9 percent on
Monday, as shipbuilders such as Hyundai Heavy extended gains amid
a growing perception that worries over slowing orders growth have
been priced in, while recently beaten-down lenders advanced.

But major exporters such as Samsung Electronics eased after
weak U.S. consumer sentiment data raised worries about demand for
South Korean goods in the country's No.2 export market.

A series of bleak economic reports on Friday showed the mood
of American consumers worsening in February to a degree that has
in the past pointed towards recession. [ID:nN15565559]

"Despite the weak data, Wall Street eked out only a small
decline on Friday," said Kim Young-gak, an analyst at Hyundai
Securities.

"Whereas investors are still bracing for more potential
negatives and additional market falls, they seem to be betting
that the scope of any losses would not be as deep as the one seen
in January."

The Korea Composite Stock Price Index was up 0.88
percent at 1,709.82 points as of 0048 GMT.

Hyundai Heavy Industries Co (009540.KS: Quote, Profile, Research, Stock Buzz), the world's biggest
shipbuilder, rose 1.34 percent to 379,000 won, as a recent spate
of big orders and firm freight rates soothed worries that credit
market strains would choke off funds for new vessels.

Daewoo Shipbuilding & Marine Engineering (042660.KS: Quote, Profile, Research, Stock Buzz) gained
1.21 percent to 37,750 won, and STX Shipbuilding (067250.KS: Quote, Profile, Research, Stock Buzz)
advanced 1.90 percent to 40,300 won.

Financials including Kookmin Bank (060000.KS: Quote, Profile, Research, Stock Buzz) also gained
some ground, after lingering concerns of more losses linked to
the U.S. subprime mortgage sector battered the sector, making
valuations attractive.

Kookmin Bank, South Korea's top lender, firmed 2.39 percent
to 59,000 won and second-ranked Shinhan Financial Group
(055550.KS: Quote, Profile, Research, Stock Buzz) added 2.15 percent to 49,800 won.

But Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research, Stock Buzz) fell 0.51 percent
to 583,000 won, and LG Electronics (066570.KS: Quote, Profile, Research, Stock Buzz) eased 0.42 percent
to 95,100 won.

(Reporting by Kim Soyoung; Editing by Keiron Henderson)