Seoul bourse expected to take cue from U.S. data next week

SEOUL, Feb. 7 (Yonhap) -- South Korean stocks are expected to take a cue from
U.S. economic indicators next week, including a US$780 billion stimulus package,
analysts said Saturday.

The U.S. government plans to make an announcement on Monday U.S. time on the
stimulus package. Senators reached a tentative deal on the measure on Friday,
according to reports.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 4.14 percent last
week from the previous week to close at 1,210.26 on Friday as foreign investors
snapped up blue chips.
The key index was the highest level since Jan. 7 when it finished at 1,228.17.
Analysts predicted that the U.S. economic stimulus plan, expected to be announced
by Treasury Secretary Timothy Geithner, will determine the direction of the KOSPI
index in the coming week.
If the U.S. plan, which includes a bank rescue program, meets investors'
anticipations, it will likely give a boost to the local market, analysts said.
But the market could lose ground if the plan falls short of investor
expectations, they added.
"Investors should keep tabs on U.S. economic policy and foreign investors' moves
next week," said Kim Jong-hyun, an analyst at Goodmorning Shinhan Securities Co.
ksnam@yna.co.kr
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