Seoul shares rebound, Samsung Electronics rises for third day

* KOSPI up 0.39 percent

* Economic uncertainty, earnings worries cap gains

* Caution remains ahead of c.bank meeting, options expiries

SEOUL, Oct 9 (Reuters) - South Korean stocks rebounded onTuesday morning, propped up by bellwether Samsung Electronics, which gained for a third straight day afterbetter-than-expected earnings estimates.

The Korea Composite Stock Price Index (KOSPI) rose 0.39percent to 1,989.57 points as of 0130 GMT, trimming lossesearlier in the day. The index ended down on Monday.

Foreign investors resumed selling on Tuesday, butinstitutional buying lent support to the market.

"The market remains lacklustre, as economic uncertaintypersists ahead of the Bank of Korea's interest rate decision andoptions expiries this week," Laurence Kim, an analyst at WooriInvestment & Securities said.

"There have been downward revisions of corporate earnings,which also weigh on the market," he said.

Euro zone finance ministers and the International MonetaryFund failed to make significant progress in deciding how best toget Greece back on track with its bailout programme.

U.S. shares fell on Monday, pressured by a weak corporateearnings outlook as the World Bank cut its growth forecasts forthe East Asia and Pacific region, and warned that the slowdownin China could worsen and last longer than many analystsexpect.

South Korea's central bank promised last week to directpolicy at shoring up the sputtering economy, as a survey showedthe manufacturing sector shrank by the most in nearly fouryears, adding to expectations it will cut interest rates onThursday.

Samsung Electronics shares rose 0.3 percent, after falling0.7 percent earlier in the day. In contrast, its rival Apple Inc

shares fell 2.2 percent overnight after China LaborWatch said a Foxconn plant in China that makes Apple's iPhonewas crippled by a strike. But Foxconn, a Taiwanese company,denied the report.

South Korean automaker Hyundai Motor snappedfour consecutive days of losses, rising 0.42 percent.

(Reporting by Hyunjoo Jin; Editing by Jacqueline Wong)


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