Seoul shares inch down on U.S. tumble

SEOUL, Dec. 16 (Yonhap) -- South Korean stocks fell 0.54 percent as overnight U.S. losses hit financial shares, but an economic stimulus plan helped pare earlier steep losses, analysts said.
The benchmark Korea Composite Stock Price Index (KOSPI) fell 6.21 points to
1,151.98 as of 11:20 a.m.
"Retail investors' massive buying helped reduce early losses as they bet massive
construction project will stimulate the sluggish economy," said Yoo Seung-min, an
analyst at Samsung Securities.
The South Korean government unveiled a plan on Monday to spend 14 trillion
(US$10.29 billion) over the next four years on improving and redeveloping four
local rivers as part of efforts to buffer an economic slowdown.
Wall Street tumbled Monday after an investment scandal weighed down on financial
shares. Former chairman of tech-laced Nasdaq Bernard Madoff was arrested on
Thursday for masterminding an alleged $50 billion scheme to swindle investors.
The Dow Jones industrial average shed 0.75 percent and the tech-heavy Nasdaq
composite index plunged 2.10 percent.
The local currency was trading at 1,356.30 won to the U.S. dollar as of 11:20
a.m., up 10.70 won from Tuesday's close.
pbr@yna.co.kr
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