Seoul shares gain

Seoul shares gained on Thursday, snapping a two-day losing streak, as retailers such as Lotte Shopping rallied after strong consumer sentiment and department store sales data reinforced optimism about the economy.
Hyundai Motor Group units extended gains in late trade after its chief was handed a suspended jail by a South Korean appeals court, freeing him to continue running the world's No 6 auto maker group.
But trading was volatile, with exporters mixed after weak US economic housing data raised worries about South Korea's No 2 overseas market, while Hana Financial Group dropped on a media report it could face a hefty tax payment. The main KOSPI is still the second-best performing major market in Asia, with a 32 percent gain so far this year.
"The consumer sentiment data has given a boost to sentiment," said Thomas Choi, head of research at UBS-Hana Asset Management. The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.2 percent to end at 1,888.81 points, after earlier falling as much as 1.1 percent.
The main index has now gained 16 percent since hitting a three-month intraday low in August 17, though the advances have been marked by volatility given lingering worries about global credit conditions arising from a US subprime mortgage crisis.
Foreign investors have also been relentless sellers since late July, unloading a further 415.2 billion won ($442.3 million) worth of shares in the KOSPI on Thursday. Retailers gained on data showing consumer sentiment hit a near five-year high in August, and a separate report earlier in the day showing a surge in sales at major department stores.
Hyundai Motor Co rose 0.6 percent to 71,800 won after earlier gaining as much as 2.2 percent, while shipping affiliate Glovis rose 4.3 percent to 58,900 won. Steel makers gained as a recent slump in the sector was seen as excessive given still strong earnings outlooks and low valuations compared to global peers.
POSCO Co Ltd, the world's fourth-biggest steel maker, rose 4.4 percent to 596,000 won, rebounding from a 3.5 percent slump over the previous two sessions.
Hynix Semiconductor Inc fell 2.3 percent to 32,050 won. Shares in chipmakers are also being hit by concerns about slumping DRAM memory chip prices. Trade volume reached 438.9 million shares worth 5.3 trillion won compared to 382.9 million shares worth 5.7 trillion won on Wednesday. Gainers trumped decliners by 453 to 329 with 85 titles ending flat.
The September KOSPI 200 futures index rose 4.10 points to 240.1, while the underlying KOSPI 200 spot index advanced 3 points to 239.6. The junior and tech-heavy Kosdaq market rose 0.43 percent to finish at 776.90.