SEOUL: Seoul shares rose on Thursday as investors picked out bargains in a battered market, reassured by rallies in US and European stocks.
Gains were led by refiners and shipbuilders, which underwent sharp falls in the previous session, as market panic about the economic outlook eased, analysts said.
The Korea Composite Stock Price Index (KOSPI) was up 3.4 percent to 1,723.59 points as of 0058 GMT.
"The market is recovering some of the losses it saw yesterday, as strong gains in US and European markets and data from the United States helped calm earlier fears about the global economy," said Kim Seong-bong, a market analyst at Samsung Securities.
Data showed that growth in the US service sector was steady in September and private hiring picked up, suggesting the economy was not yet slipping to recession.
Foreign investors were buyers of a net 37.5 billion Korean won ($31.5 million) worth of stocks after two sessions of selling. Pension funds also picked up 3.5 billion won worth worth after selling in the previous session.
Shares in S-Oil , the country's No.3 crude oil refiner, jumped 8.6 percent and GS Holdings rallied 6 percent.
Hyundai Heavy Industries , the world's top shipbuilder, advanced 7.3 percent and Samsung Heavy Industries climbed 8.4 percent.
Technology issues also rise firmly, with LG Electronics , the world's No.3 handset maker, up 6.3 percent and LG Display , the world's No.2 flat panel maker, up 6.9 percent.
Hynix Semiconductor , the world's No.2 memory chip maker, climbed 6.8 percent, buoyed by a 3 percent rise in US Philadelphia semiconductor index . Samsung Electronics was up 3.8 percent.
Retailers underperformed after finance ministry data showed sales at stores owned by the sector leaders posted the worst performance in seven months in September.
Shares in Shinsegae Co Ltd , the country's No.2 retailer by market value, edged up 0.9 percent. Lotte Shopping Co Ltd , the country's No.1, was up 1.6 percent.
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