South Korean Stocks Rise, Led by Samsung: World's Biggest Mover

South Korean stocks rose, paced by mobile-phone makers Samsung Electronics Co. and LG Electronics Inc., after they joined an alliance led by Google Inc. to create a new handset operating system.

Google, owner of the world's most popular Internet search engine, yesterday announced a 34-member alliance to make a system code-named ``Android'' that will allow programmers to develop free software for handsets.

``It isn't bad news for Korean handset makers, since they are always looking for a technological edge against rivals such as Nokia Oyj,'' said Lee Seung Jun, who helps manage $2 billion at CJ Asset Management Co. in Seoul.

Samsung Electronics, Asia's largest maker of mobile phones, rose 20,000 won, or 3.8 percent, to 548,000. LG Electronics, Samsung's main rival in Korea, gained 8,000 won, or 8.9 percent, to 98,000, its biggest advance since May 2004.

``In the medium term, we believe this announcement will have a positive impact on handset replacement rates,'' Credit Suisse Group analysts including Michael Ounjian wrote in a report yesterday.

The Kospi index rose 38.48, or 1.9 percent, to 2,054.24 at the close of trading in Seoul, its first advance in four days and the largest fluctuation among markets included in global benchmarks. The Kosdaq index gained 0.8 percent to 800.92. Kospi 200 futures expiring in December climbed 2.4 percent to 260.50, while the underlying index advanced 2.1 percent to 259.24.

Other technology shares also rose. Hynix Semiconductor Inc., the world's second-largest computer memory chipmaker, gained 500 won, or 2.1 percent, to 24,150. LG.Philips LCD Co., the world 's second-largest maker of liquid crystal displays, climbed 4,300 won, or 8.3 percent, to 56,000, while Samsung SDI Co., the world's second-largest maker of plasma display panels, added 3,900 won, or 6.1 percent, to 67,400.

About 308 million shares valued at 7.3 trillion won ($8 billion) changed hands on the Korea stock exchange, 6 percent more than the three-month daily average of 6.9 trillion won.
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