* KOSPI up nearly 1 pct, recovers from near year low
* Bargain hunting targets battered cyclical stocks
* LG Elec rallies on improved Q2 handset, profit outlook
By Joonhee Yu
SEOUL, June 5 (Reuters) - Seoul shares rebounded on Tuesday morning from levels just above their low this year, poised to snap a four-day losing streak as investors looked to the Group of Seven industrialised nations to take decisive action in tackling Europe's resurgent debt crisis.
The Korea Composite Stock Price Index (KOSPI) was up 0.96 percent at 1,800.26 points by 0236 GMT, recovering from a two-and-a-half week closing low logged in the previous session where shares also fell to their lowest intraday level in 2012.
"Investors are pinning their hopes on the G7 and the ECB meetings and have taken on a bit of encouragement as well from signs of a German policy shift, but we still need to see some tangible results to say a bottom has been carved out in the market," said Ham Sung-sik, an analyst at Daishin Securities.
Finance chiefs of the Group of Seven leading industrialised powers will hold a special conference call for an emergency discussion on the debt crisis in Europe on Tuesday, a sign of heightened global alarm about strains in the single currency bloc.
Battered cyclical stocks, most notably shipyards, outperformed peers on bargain hunting. Daewoo Shipbuilding & Marine Engineering climbed 3.8 percent while Samsung Heavy Industries advanced 3.3 percent.
Crude oil refiners recovered after oil prices snapped a four-day slide to edge higher on Monday, with SK Innovation gaining 2 percent while S-Oil rose 1.5 percent.
The KOSPI 200 benchmark of core stocks was up 0.81 percent, with 163 out of its 200 listed components trading higher to underscore broad gains in the market.
The star performer among blue-chip heavyweights was LG Electronics, rallying 3.4 percent and on track to snap a five-day losing streak as analysts cited its expanding foothold in the smartphone market and rosy second quarter profit outlook.
Investors will be on watch for any market cues and a much needed confidence boost ahead of three major events this week: the G7 conference call on Tuesday, the European Central Bank's policy rate meeting on Wednesday and U.S. Fed Chairman Ben Bernanke's congressional testimony on Thursday. (Editing by Jacqueline Wong)