Seoul shares rally

Seoul shares surged to their highest in almost four weeks on Friday, led by exporters such as LG.Philips LCD, after the Federal Reserve toned down its warnings about further interest rate rises in the world's largest economy.
The Fed raised US interest rates by a quarter-percentage point on Thursday, as widely expected, but its long-awaited policy statement was interpreted as a softening of its recent inflation rhetoric.
Foreign investors added to the momentum in South Korean shares by turning net buyers after selling a net $3.1 billion over the past 17 consecutive sessions. They purchased a net 201.7 billion won ($212.1 million) worth in local shares on Friday, data at 0645 GMT showed.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 2.54 percent to end at 1,295.15, its highest close since ending at 1,301.62 on June 5.
The index climbed 5.4 percent over the past five sessions, marking its biggest weekly gain since surging 7.12 percent in the trading week ended November 4, 2005.
Exporters surged on Friday, with Samsung Electronics Co Ltd, the world's biggest memory chip maker, rising 2.2 percent to 603,000 won, while flat-panel maker LG.Philips LCD Co Ltd gained 4.13 percent to 35,300 won.
Other blue chips also extended a rally that began Thursday, when the KOSPI rose 2 percent. Kookmin Bank, the country's biggest lender, rose 3.86 percent to 78,000 won.
Data on Friday showed South Korea's service sector output was unchanged in May from April after seasonal adjustment, although some analysts said the index overall has been steadily recovering since late 2004. The Fed's softer tone on inflation risk also sent metal prices sharply higher, with Korea Zinc Co Ltd surging 11.88 percent to 74,400 won.
Gainers trumped decliners by 634 to 141 with 43 titles ending flat.
Trade volume reached 223.3 million shares worth 3.6 trillion won, data at 0645 GMT showed, compared to 205.1 million shares worth 3 trillion won on Thursday.
Retail investors sold a net 344.6 billion won, although institutional investors bought a net 98.8 billion won. The September KOSPI 200 futures index jumped 3.25 points to 167.35, while the underlying KOSPI 200 spot index gained 4.15 points to 167.45. South Korea's junior and tech heavy Kosdaq market rose 2.39 percent to finish at 590.68.