SEOUL: Seoul shares rose on Tuesday as technology stocks like LG Display continued to be lifted on the back of strong US holiday sales, with sentiment buoyed further by solid gains on Wall Street.
"The biggest factor lifting the market today is US holiday retail sales, which came out strong and cheered investors," said Lee Jae-hoon, a market analyst at Mirae Asset Securities.
"But I would not say the market is bullish...it is one of those sporadic rallies amid a broader bearish trend."
Fitch's warning of a US sovereign rating downgrade had limited impact on markets, as it was "timely," according to Lee Jae-mahn, a market analyst at Tong Yang Securities.
Fitch Ratings gave the United States until 2013 to come up with a "credible plan" to tackle its ballooning budget deficit before it downgrades the country's coveted AAA rating.
Institutions were buyers of a net 22.3 billion won ($19.32 million) worth of stocks, poised to pick up shares for a fourth straight session. Foreign investors purchased a net 89 billion won, set to snap eight straight sessions of selling.
The Korea Composite Stock Price Index (KOSPI) was up 1.42 percent at 1,840.97 points as of 0156 GMT.
Technology stocks led gains as robust US Thanksgiving sales pointed to strong demand for electronics goods.
LG Electronics, the world's No.3 handset maker and a household appliance giant, rose 2.9 percent. LG Display , the world's No.2 flat panel maker, jumped 5.3 percent.
Hyundai Motor was up 2.4 percent and Kia Motors climbed 1.6 percent.
Shares in seafood and chicken producers rallied after local media reports of a death from conditions related to mad cow disease. South Korea's center for disease control was unavailable for comment.
Dong Won Fish spiked 10 percent and Harim Holdings, a chicken producer, was up 4.13 percent.
Defensive issues underperformed as investor sought riskier bets.
Shares in SK Telecom, the country's top wireless carrier, fell 1.6 percent, and snack maker Orion Corp fell 2.5 percent.
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