Seoul shares seen higher, U.S. data to help

SEOUL, April 4 (Reuters) - Seoul shares may open higher on
Monday, helped by positive U.S. jobs data, but rises may be
limited after the market posted its highest-close ever on
Friday.

"Markets will probably open higher buoyed by an improving
global economic backdrop, particularly on the labor market front
in the U.S.," said Kim Young-june, a market analyst at SK
Securities.

U.S. employment grew firmly for a second straight month in
March and the jobless rate hit a two-year low of 8.8 percent,
underscoring a decisive shift in the labor market that should
help to underpin the recovery.[ID:nNOAT00477]

"Sentiment is good, but rises may be limited following a
recent gaining streak," Kim said, adding that some profit-making
moves may take place at the index's current level.

The Korea Composite Stock Price Index (KOSPI)
finished up 0.7 percent at 2,121.01 points on Friday, a record
closing high and less than 1 point away from an all-time
intraday high of 2,121.06 hit in late January.

The KOSPI's 20-day relative strength index is around 76.7
points, well above the overbought territory mark of 70.

----------------------MARKET SNAPSHOT @ 2215 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 1332.41 0.5% 6.580
USD/JPY 84.31 0.2% 0.170
10-YR US TSY YLD 3.4496 -- 0.000
SPOT GOLD 1429.19 0.08% 1.210
US CRUDE CLc1 108.35 0.38% 0.410
DOW JONES 12376.72 0.46% 56.99
ASIA ADRS 140.30 0.72% 1.00
-------------------------------------------------------------

MARKET SUMMARY
*Wall St gains on job growth; earnings next hurdle

*U.S. rates markets will focus on ECB decision

*Dollar may struggle as ECB, Fed policies diverge

*Oil rises to 2-1/2 peak on job rise, supply fear

STOCKS TO WATCH

REFINERS

SK Energy will lower petrol and diesel prices
slightly for three months to help government efforts to tame
inflation, the largest South Korean refiner said on
Sunday.[ID:nL3E7F302N]

KUMHO TIRE

The company said on Sunday it will conduct a voluntary
recall of 302,673 tires from April 15 in China after it found
that its Tianjin plant did not observe production standards for
a certain period of time.

KIA MOTORS

Kia Motors America said it saw all-time record sales for
March 2011 and the best quarter in the company's
history.[ID:nASA01V8D]

POSCO

Moody's, the rating agency, downgraded POSCO Engineering &
Construction to Baa2 with stable outlook. POSCO, the world's
No.3 steelmaker, is its majority shareholder.[ID:nWLA7045]

(Reporting by Park Jung-youn; Editing by Dhara Ranasinghe)