(LEAD) Seoul shares end 0.7 pct higher on eased recovery woes

(ATTN: ADDS bond yields at bottom)
SEOUL, Sept. 6 (Yonhap) -- South Korean stocks closed 0.7 percent higher Monday
as better-than-expected U.S. job reports underpinned investor sentiment, analysts
said. The local currency rose against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 12.4 points to
1,792.42. Trading volume was moderate at 322.8 million shares worth 5.35 trillion
won (US$4.57 billion), with gainers outnumbering losers 438 to 348.
"Investors were relieved by eased worries about the global recovery, but the
market lacked the upward momentum to surpass the 1,800-point mark," said Kim
Hyoung-ryoul, an analyst at NH Investment & Securities Co.
Kim said the Seoul bourse is likely to be cautious against the Bank of Korea's
monthly rate-setting session with the possibility that investors may take profit
as the index nears the 1,800-point level.
U.S. stocks closed higher on Friday as stronger-than-expected job data dispelled
concerns about a double-dip recession. The Dow Jones industrial average rose 1.24
percent and the tech-laden Nasdaq composite advanced 1.53 percent.
Foreign investors scooped up local stocks worth 335.5 billion won on the main
bourse, outweighing sell-offs by institutional and retail investors.
Most large caps gained ground, led by tech, financial and automaking shares.
Market leader Samsung Electronics gained 2.5 percent to 780,000 won and chip
giant Hynix Semiconductor added 0.23 percent to 21,850 won.
After rising 0.7 percent at one point, No. 3 financial services company Shinhan
Financial Group closed flat at 43,100 won due to its president-involved
embezzlement scandal. The group's banking unit on Thursday lodged a criminal
charge with the prosecution against former President Shin Sang-hoon, accusing him
of involvement in an illegal lending case.
But its rival KB Financial Group rose 1.24 percent to 48,900 won and No. 4 player
Hana Financial Group added 1.62 percent to 31,450 won.
Leading automaker Hyundai Motor rose 1.7 percent to 149,500 won and its affiliate
Kia Motors jumped 4.69 percent to 33,450 won.
The local currency ended at 1,171.20 won to the U.S. dollar, up 3.9 won from
Friday's close, as foreign investors increased their holding of Seoul stocks,
dealers said.
Bond prices, which move inversely to yields, closed lower. The yield on
three-year Treasury notes rose 0.04 percentage points to 3.69 percent and the
return on benchmark five-year government bonds added 0.07 percentage points to
4.14 percent.
sooyeon@yna.co.kr
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