Seoul shares end firmer

Seoul shares rose on Monday, recovering from five-week lows, led by exporters such as Hyundai Motor after central banks, including South Korea's, stood ready to implement measures to avert a potential credit squeeze.
But plenty of hesitancy remained in a KOSPI that in the previous session saw its biggest drop in over three years amid worries that a US subprime mortgage crisis would tighten credit and leave some funds exposed to soured investments.
Shipbuilders and construction firms such as Hyundai Engineering and Construction Co were left out of the advance, falling on worries the number of overseas orders would decrease should it become harder to finance investments.
"Central banks from the US to Japan are putting liquidity into the markets and that's helping ease the negative impact from the subprime worries," said Kim Yung-min, a fund manager at Jeil Mutual Savings Bank.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.14 percent to end at 1,849.26 points, rebounding after hitting its lowest close since July 3 on Friday. The main index has now fallen 8.2 percent since hitting an all-time high on July 26, still below the 10 percent drop that typically defines a correction.
Foreign investors have been heavy sellers during the period, unloading around a net 460.3 billion won ($495.6 million) worth of shares on Monday to mark their 20th session of net sales in the past 21 trading days.
Asia's central banks again moved to calm markets, with South Korea saying on Monday it would take swift steps, including supplying emergency funds, if a credit crunch arises, while the Bank of Japan injected $5.1 billion into the banking system. Central banks around the world, including the Federal Reserve and the European Central Bank, had already pumped money into banking systems on Friday. The actions helped reduce fears about the impact of tighter credit on the global economy.
Hyundai Motor Co, the country's biggest automaker, rose 1.66 percent to 73,700 won, while Samsung Electronics Co Ltd gained 1.66 percent to 613,000 won. LG.Philips LCD Co Ltd rose 3.55 percent to 46,700 won after the Seoul Economic Daily reported the flat panel maker was planning to cut as many as 1,500 jobs among its staff and shift some facilities to China in a bid to reduce costs.
Kookmin Bank, the country's biggest lender, gained 3.47 percent to 74,500 won. Hyundai Engineering dropped 2.91 percent to 76,700 won, while Daewoo Shipbuilding and Marine Engineering Co lost 1.47 percent to 53,700 won. Institutional investors bought a net 563.3 billion won worth of shares in the main bourse, but retail investors sold a net 202.2 billion won.
Trade volume reached 323 million shares worth 4.9 trillion won compared to 388 million shares worth 7.1 trillion won on Friday. Decliners edged out gainers by 411 to 366 with 66 titles ending flat. The September KOSPI 200 futures index rose 3.75 points to 233.75, while the underlying KOSPI 200 spot index gained 3.20 points to 233.88. The junior and tech-heavy Kosdaq market fell 0.28 percent to finish at 786.20.