Seoul stocks seen falling on US economic woes, AIG

SEOUL, March 3 (Reuters) - Seoul stocks are likely to start
lower on Monday hurt by the prospect of a U.S. recession and
more write-down in the global financial sector, while investors
will also eye clues for a local interest rate cut.

Exporters and financial firms are expected to come under
pressure, hit by weak U.S. economic data that added to
recession fears and a record loss at insurer AIG (AIG.N: Quote, Profile, Research), news
that sent U.S. stocks lower on Friday.

"Foreign investors' interest will weaken following losses
in U.S. markets," said Shim Jae-youb, an analyst at Meritz
Securities. Foreigners were net buyers on the main domestic
board for three out of five sessions last week.

"Interest rate policy and outlook for first-quarter
earnings will be key drivers of stock prices in March," Shim
said.

South Korea is set to report a raft of economic data this
week, with February exports and consumer price inflation due on
Monday, January's factory output data on Tuesday and the
central bank's monthly rate meeting on Friday.

The Korea Composite Stock Price Index ended 1.41
percent lower on Friday at 1,711.62 points, retreating from a
six-week closing high on Thursday.

----------------------MARKET SNAPSHOT @ 2232 GMT
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INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1330.63 -2.71% -37.050
USD/JPY <JPY=> 103.33 -0.22% -0.230
10-YR US TSY YLD <US10YT=RR> 3.5186 -- 0.000
SPOT GOLD <XAU=> 973.7 0.00% 0.000
US CRUDE CLc1 101.79 -0.78% -0.800
DOW JONES .DJI 12266.39 -2.51% -315.79
-------------------------------------------------------------

MARKETS SUMMARY
*Wall St tumbles on recession fears, AIG [ID:nN29240746]
*Oil slips from record $103 as Turkey removes troops
[ID:nSP141549]
*Dollar pressured on data, halts slide vs euro
[ID:nN29238736]
*Treasuries soar as recession fear hits stocks [ID:nN29234240]

STOCKS TO WATCH

- POSCO

POSCO (005490.KS: Quote, Profile, Research), the world's fourth-largest steel maker,
said on Sunday it had begun construction of a $129 million
steel pipe plant in the United States jointly with U.S. Steel
Corp (X.N: Quote, Profile, Research) and SeAH Steel Corp (003030.KS: Quote, Profile, Research). [ID:nSEO126932]
(Reporting by Rhee So-eui, editing by Jacqueline Wong)