(LEAD) Seoul shares end 0.49 pct higher on foreign buying

(ATTN: ADDS bond yields at bottom)
SEOUL, Dec. 7 (Yonhap) -- South Korean stocks closed 0.49 percent higher Monday
as foreign investors took comfort from Wall Street gains following the release of
better-than-expected U.S. job data, analysts said. The local currency fell
against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 7.89 points to
1,632.65, the sixth straight sessions of gains. Volume was moderate at 260.6
million shares worth 3.83 trillion won (US$3.32 billion) with gainers outpacing
losers 415 to 314.
"Continued buying by foreign investors supported the key index. Although the
Seoul bourse underwent a correction due to concerns over fourth-quarter earnings
outlooks, it has gained momentum in recent sessions after eased woes over Dubai's
debt crisis revived risk appetite," said Bae Sung-young, an analyst at Hyundai
Securities.
The KOSPI traded in positive territory throughout the session, but its upward
momentum was limited by institutional and retail investors' sell-offs, analysts
said.
Tech blue chips and automakers led the overall gains. Market leader Samsung
Electronics rose 1.18 percent to 771,000 won and chip giant Hynix Semiconductor
advanced 1.78 percent to 20,050 won.
Ssangyong Motor, the country's smallest carmaker, jumped by the daily limit of 15
percent to 3,935 won and top automaker Hyundai Motor gained 0.96 percent to
105,000 won.
U.S. markets closed higher on Friday, helped by improving job data. The Dow Jones
industrial average rose 0.22 percent and the tech-laden Nasdaq composite index
added 0.98 percent.
After touching an intra-day high of 1,151.10 to the dollar, the local currency
ended at 1,153.30 won against the dollar, down 0.30 won from Friday's close, as
offshore investors snapped up the greenback, dealers said.
Bond prices, which move inversely to yields, closed sharply lower in tandem with
a sharp fall in U.S. bond prices, on concerns that strong U.S. job reports may
push up the timing of a rate hike by the Federal Reserve.
The return on three-year Treasuries rose 0.08 percentage point to 4.24 percent,
and the benchmark yield on five-year government bonds increased 0.07 percentage
point to 4.75 percent.
sooyeon@yna.co.kr
(END)