Seoul shares higher

Seoul shares closed higher on Monday, backed by a European summit agreement tightening the region's fiscal union and bolstering the IMF's bailout capacity, but sentiment remained fragile on doubts the measures will prove to be enough. The Korea Composite Stock Price Index (KOSPI) ended up 1.33 percent to close at 1,899.76, tracking gains in its Asian peers.
Large-cap technology shares spearheaded the rise, with LG Electronics soaring 4.51 percent and Samsung Electronics climbing 2.94 percent. While last week's EU summit signified a leap of progress in forging closer economic ties and providing an extra buffer against debt default, skeptical investors believe such measures are far from a silver bullet solution.
On Monday, the South Korean government sharply cut its 2012 growth forecast to 3.7 percent from an initial 4.5 percent, highlighting the damage wrought by Europe's long-running debt crisis despite Friday's landmark deal. The KOSPI 200 index rose 1.48 percent, while the junior Kosdaq index gained 1.5 percent.