Seoul shares seen little changed on US budget standoff

Reuters

SEOUL, Oct 7 (Reuters) - Seoul shares are expected to trade

within a narrow range Monday with the unlikelihood of a

short-term resolution to the U.S. government shutdown deterring

local buyers, even as the prospect of a weaker dollar encourages

some foreign investors.

Uncertainty was heightened over the weekend after Republican

House Speaker John Boehner warned the U.S. could be headed

towards a default if U.S. President Barack Obama did not

negotiate ahead of an Oct. 17 deadline to raise the debt

ceiling.

"The market will be contained to a box pattern on downside

risks from prolonged shutdown of U.S. government," IBK

Investment & Securities said to a note to its clients.

Looking ahead, the brokerage said Wednesday's publication of

minutes from the September meeting of the U.S. Federal Reserve's

Open Market Committee could stir volatility if it points to

vigorous debate about the timeline for the Fed's plans to begin

trimming economic stimulus measures.

Shinahan Securities analyst Han Beom-ho said a weaker dollar

stemming from Washington's political standoff, leading to a

firmer won, could provide one reason for foreign

investors, a key driver of Seoul stocks, to keep putting money

into the Seoul market in the upcoming week.

Foreigners extended their net buying streak to a 27th

consecutive session on Friday, purchasing 413.9 billion won

($386.70 million) worth of local shares. That brought their

total purchases for the period to a net 10 trillion won.

The Korea Composite Stock Price Index (KOSPI) fell

0.1 percent to close at 1,996.98 on Friday. KOSPI slipped 0.7

percent for the week, snapping a five-week winning streak.

------------------MARKET SNAPSHOT @ 22:40 GMT-------------------

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 1,690.50 0.71% 11.840

USD/JPY 97.22 0.23% 0.220

10-YR US TSY YLD 2.645 -- 0.000

SPOT GOLD $1,313.90 0.25% 3.290

US CRUDE $103.43 -0.39% -0.410

DOW JONES 15072.58 0.51% 76.10

ASIA ADRS 147.21 0.62% 0.91

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>Wall St end up, but Dow S&P fall for week as shutdown drags

>U.S. bill rates rise on government default worries

>Dollar up from 8-month low but shutdown, debt limit looms

>Oil ends higher as offshore oil output cut due to storm

STOCKS TO WATCH

SAMSUNG SDI CO LTD

Battery producer Samsung SDI confirmed on Friday it is in

talks with Tesla Motors Inc about supplying technology

to the U.S. electric vehicle producer.

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