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By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an
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Seoul shares may extend gains, led by carmakers
Reuters - 1 hour 37 minutes ago
SEOUL, Dec 22 - Seoul shares look set to open higher on Monday, with automakers and technology stocks remaining in the spotlight as the U.S. government's auto rescue plan eased fears about an economic slump.
The U.S. government said on Friday it would provide $17.4 billion in emergency loans to Detroit carmakers crippled by the economic downturn. [ID:nSP155126]
Seoul shares rose for a fifth straight session on Friday, led by chip makers and telecom shares, which are seen as benefiting most from an economic revival.
"Stocks sensitive to economic cycles such as autos, banks and IT stocks seem to have more upside room," said Tong Yang Securities' analyst Lee Jae-mahn.
"They have high betas, which means when stock markets are rebounding, they tend to outperform more than others."
Limiting the gains would be sharp falls in global oil prices, as fears of an economic slowdown weighed heavier than proposed production cuts by the world's major oil exporters.
The Korea Composite Stock Price Index <.KS11> rose 0.43 percent to end at 1,180.97 points on Friday, off the day's high of 1,194.52 points. The index logged a 7 percent gain on the week and marked its highest finish since Nov. 5. ----------------------MARKET SNAPSHOT @ 2240 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 <.SPX> 887.88 0.29% 2.600 USD/JPY <JPY=> 89.26 0.15% 0.130 10-YR US TSY YLD <US10YT=RR> 2.1296 -- 0.000 SPOT GOLD <XAU=> 837.6 0.00% 0.000 US CRUDE <CLc1> 42.4 1.75% 1.240 DOW JONES <.DJI> 8579.11 -0.30% -25.88 ASIA ADRS <.BKAS> 93.27 0.75% 0.69 -------------------------------------------------------------
MARKETS SUMMARY *S&P, Nasdaq gain after auto aid, but energy hits Dow [ID:nN19471716] *Oil falls over 6 pct on demand outlook [ID:nLJ262517] *Dollar jumps vs euro, biggest daily gain in 2 mos [ID:nN19346644] *Treasuries down on profit-taking, auto rescue plan [ID:nN19463463]
STOCKS TO WATCH
POSCO <005490.KS>, HYUNDAI MERCHANT MARINE <011200.KS>
KB Financial Group <105560.KS> said on Friday it would buy a combined 450 billion won worth of shares in POSCO and shipping company Hyundai in after-hours trade on Monday, in a share swap deal. [ID:nSEO289659]
KOREA ELECTRIC POWER CORP <015760.KS>
The Finance Ministry on Sunday announced a plan to cut jobs at KEPCO and other state-run companies, and sell their idle assets to fill a possible fiscal deficit. [ID:nSEO269170]
DOOSAN CORP <000150.KS>
The company said it would pick a preferred buyer of its spirits-making division on Monday, in a deal that the Maeil Business Newspaper reported was worth up to 600 billion won ($468 million).
Retail giant Lotte Group is among the bidders.
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