Seoul shares higher

Seoul shares reversed early losses to close higher on Tuesday, led by exporters that could benefit from a weaker won currency, while some defensive telecommunications and consumer issues also advanced. Shares turned positive after the Reserve Bank of Australia slashed that country's interest rates by a larger-than-expected 100 basis points.
That was double the amount expected and reinforced investor hopes for a co-ordinated response to the global financial crisis. The Korea Composite Stock Price Index closed 0.54 percent higher at 1,366.10 points, up from a session low of 1,321.81 points.
"The selling spree stabilised somewhat after an interest rate cut by the Australian central bank, which pointed to the likelihood of an easier monetary stance by central banks world-wide," said Choi Seong-lak, a market analyst at SK Securities. "It is too early to say, however, to what extend the efforts by governments and central banks will help improve the credit market environment. It will take weeks before the effects kick in, and if another financial firm goes bad in the meantime, markets are bound for another downward run," Choi added.
Analysts also said that rises in US stock futures helped lift sentiment toward Seoul stocks. S&P 500 futures were up 1.35 percent and Dow Jones Industrial average futures were up 1.27 percent as of 0604 GMT. Nasdaq 100 futures were 1.46 percent higher. Institutions were buyers of a net 162 billion won ($121.2 million) worth of shares, with pension funds buying a net 44 billion won. Foreign investors had sold a net 113 billion won.
Separately, the South Korean financial regulator had early on Tuesday made efforts to calm jittery markets, saying they were considering stabilisation measures. "We will study and unveil additional measures to stabilise stock markets," said Rhee Chang-yong, vice chairman of the Financial Services Commission. Exporters led the Seoul market's gains as the won currency dropped 4.5 percent against the US dollar.
Samsung Electronics was up 2.71 percent and LG Electronics gained 3.9 percent. Hyundai Motor, the country's top auto maker, was trading 2.41 percent higher and Kia Motors was up 6.62 percent. Banking shares also turned higher, with Shinhan Financial Group ending 1.17 percent higher after eight consecutive losing sessions and Hana Financial Group ended up 3.05 percent.