SEOUL: Seoul shares reversed earlier losses to eke out a small gain on Tuesday after two consecutive falling sessions, but rises were limited as a lack of progress in dealing with debt issues in the United States and Europe sapped investor confidence.
"The small rebound in Seoul shares today was a technical adjustment, with investors shrugging off the news of a breakdown in the US deficit talks as they pinned few hopes on a compromise in the first place," said Y.S. Rhoo, a market analyst at Hyundai Securities.
Optimism about a euro zone finance heads' meeting at the end of the month and that the US economy may find further support from the upcoming holiday shopping season could help shares in the near term, Rhoo said.
US lawmakers abandoned their high-profile effort to rein in the country's ballooning debt on Monday in a sign that Washington likely will not be able to resolve a dispute over taxes and spending until 2013.
The market will likely be trapped within the 1,800-1,900 point range through the end of the year, said Kwak Joong-bo, a market analyst at Samsung Securities.
Foreign investors were sellers of a net 313.4 billion won ($274.77 million) worth of stocks, offloading shares for a fourth straight session. Institutions were buyers of a net 136.3 billion won, snapping a five-session selling streak.
The Korea Composite Stock Price Index (KOSPI) ended up 0.34 percent or 6.25 points at 1,826.28 points.
Nuclear power related stocks rallied after the South Korean government re-confirmed its commitment to promote and invest in the industry at a meeting led by the Prime Minister's Office, an official told Reuters on Tuesday, confirming media reports.
Nuclear power plant designer KEPCO Engineering & Construction rose 5.3 percent and KEPCO Plant Service & Engineering, which maintains and operates nuclear power facilities, jumped 6.6 percent.
Technology issues also saw solid gains, with Samsung Electronics advancing 1.4 percent and Hynix Semiconductor climbing 1.5 percent.
But refiners underperformed after crude oil prices fell in US trade overnight, sowing worries about lower oil product pricing.
Shares in SK Innovation ended down 0.61 percent and GS Holdings, the holding company of GS Caltex, the country's No.2 crude oil refiner, fell 0.17 percent.
Steelmakers were pressured by a local media report China Steel Corp asked the Taiwanese government to impose anti-dumping duties on steel products from Korea and four other countries.
POSCO fell 1.35 percent and Hyundai Steel declined 1.4 percent.
The KOSPI 200 index rose 0.49 percent, while the junior Kosdaq market advanced 1.47 percent.
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