Seoul shares gain

Seoul shares closed 1.1 percent higher on Friday, as a drop in oil prices below $49 a barrel eased worries about a slowdown in corporate profits and lifted shares in key exporters such as steel maker POSCO. But uncertainty ahead of a key US employment report, due later in the day, and the continued strengthening of the South Korean won capped further gains, analysts said.
The benchmark Korea Composite Price Index (KOSPI) gained 1.11 percent to end at 860.68, rising 3.1 percent for the week. It hit 865.38 points earlier in the session, its highest intraday level since October 13 when it hit 866.07.
"The gains in the US markets and a decline in oil prices are having a positive effect by easing concerns about the impact on the economy," said Kim Ji-hwan, an equity strategist at Hyundai Securities.
Wall Street extended post-presidential election gains on Thursday, as US crude oil futures fell below $49 a barrel to a five-week low. Oil was trading at $48.60 a barrel in Asia.
South Korea is the world's fourth-largest oil importer and has to import all of its crude needs. Investors also found some relief with the third-quarter corporate earnings season heading into the final stretch. Top fixed-line and broadband provider KT Corp reported on Friday it had swung to a quarterly profit, lifting shares 1.34 percent to 37,800 won. Major exporters were among the leading gainers, with POSCO Co Ltd, the world's fifth-largest steel maker, rising 1.77 percent to end at 172,500 won.
Tech shares also gained, with the world's biggest memory chip maker, Samsung Electronics Co Ltd, ending up 1 percent at 452,500 won.
LG.Philips LCD, the world's number two liquid crystal display maker, surged 4.52 percent to end at 32,800 won, boosted by hopes for a surge in panel shipments in the fourth quarter.
Shares in LG Electronics Inc, the world's fifth-largest cellphone maker in the third quarter, rose 2.75 percent to 67,300 won, after saying it aimed to expand handset production capacity.
Utilities were also up, with state-run Korea Gas Corp rising 2.01 percent to a new 2004 closing high of 35,550 won.