Seoul shares gain

Seoul shares erased earlier falls and ended up on Tuesday as battered chemical and auto issues rebounded sharply and a raft of Chinese data lifted investor sentiment. The Korea Composite Stock Price Index ended up 1.37 percent at 2,076.83 points. KOSPI 200 September futures rose 3.9 points to 275.45 points and the KOSPI 200 spot index gained 3.88 points to 273.67. The junior Kosdaq market ended up 0.9 percent at 462.29.
"The market was relieved by the batch of Chinese data that came out today. Inflation, while high, came within expectations, and the output data showed China's economy was in okay shape," said Lee Jin-woo, a market analyst at Mirae Asset Securities. China's inflation accelerated in May to a 34-month high of 5.5 percent, while industrial output last month rose 13.3 percent from a year earlier.
Analysts said the data suggested the world's second-biggest economy was slowing down, but not too quickly, providing relief for financial markets and leaving room for Beijing to focus on fighting inflation. Foreign investors however remained net sellers for a fourth straight session, offloading a net 51.1 billion won ($47 million) worth of stocks. Automakers rallied after a run of substantial losses. Shares in Hyundai Motor rose 4.2 percent and Kia Motors climbed 3.4 percent.
Chemical issues, which underwent sharp corrections this month, also rebounded firmly. Shares in LG Chem ended up 1.9 percent after seeing more than 8 percent losses so far this month. Hanwha Chemical rallied 6.3 percent. S-Oil, the country's No 3 crude oil refiner, advanced 3.1 percent and SK Innovation rose 4.1 percent. GS Holdings climbed 2 percent. Defensive issues underperformed as investors sought out battered growth-oriented stocks.
Shares in SK Telecom, the country's No 1 wireless carrier, dipped 0.7 percent and Korea Electric Power Corp shed 1.3 percent. A 0.4 percent loss in the Baltic Dry Index, which tracks the cost of shipping key commodities, pressured shipping stocks. STX Pan Ocean fell 1 percent and Hyundai Merchant Marine lost 0.5 percent.