(LEAD) Seoul stocks close up 0.46 pct on waning Greek debt woes

(ATTN: ADDS bond yields at bottom)
SEOUL, Feb. 16 (Yonhap) -- South Korean stocks closed 0.46 percent higher Tuesday
as promises of financial aid to debt-ridden Greece helped shore up investor
sentiment, analysts said. The local currency inched down against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) advanced 7.39 points to
end at 1,601.05, its first closing above the 1,600-mark in seven trading
sessions. Volume was light at 271.1 million shares, worth 2.7 trillion won
(US$2.3 million), with gainers outnumbering losers 461 to 303.
"Risks over Greek debt problems receded after European countries agreed to extend
financial aid to the country while the impact from China's moves to further curb
lending was limited," said Sim Jae-yup, an analyst at Meritz Securities.
Steel-makers spearheaded the broader market gains with shares of POSCO jumping
1.87 percent to 544,000 won. The world's fourth-largest steelmaker was bolstered
by rising global steel prices and reviving sales. Smaller rival Hyundai Steel
soared 3.14 percent to settle at 85,300 won.
Auto firms also gathered ground as investors bet that safety concerns at Japanese
automaker Toyota will help local carmakers clinch a larger market share. Top
carmaker Hyundai Motor gained 0.86 percent to 117,000 won and its smaller
affiliate Kia Motors rose 3.33 percent to end at 21,750 won.
Electronics giant and market heavyweight Samsung Electronics also climbed 0.8
percent to 756,000 won after launching a new mobile handset based on Samsung's
operating platform "Bada".
Daewoo Engineering & Construction surged 6.1 percent to 11,300 won on
expectations that the nation's No. 2 builder would find a new buyer after stalled
takeover talks. U.S.-based TR America Consortium is reportedly in talks with
Kumho Asiana Group to purchase a controlling stake in the construction company,
according to industry sources.
Financial firms, however, extended their losses due to lingering jitters over
fiscal deficit problems in the euro zone.
KB Financial Group, which contolled top lender Kookmin Bank, fell 1.96 percent to
50,000 won and Woori Finance Holdings, the nation's second-largest financial
firm, declined 1.44 percent to end at 13,700 won.
The local currency ended at 1,151.5 won to the U.S. dollar, down 0.2 won from
Friday's close, dealders said.
Bond prices, which move inversely to yields, closed mixed. The yield on the
benchmark three-year Treasury note closed flat at 4.12 percent, and the return on
five-year government bonds rose 0.01 percentage point to 4.73 percent.
pbr@yna.co.kr
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