S.Korean shares drift lower after c.bank holds rate; won steady

* KOSPI turns slightly lower, builders buck trend * Won steady as dlr rally cools ahead of U.S. data By Joonhee Yu SEOUL, Nov 13 (Reuters) - South Korean shares surrendered modest early gains to inch lower on Thursday after the Bank of Korea held base rates steady at its policy meeting. Caution prevailed, with a spate of U.S. and Chinese economic data releases due later in the session expected to set the tone for coming movement. The Korea Composite Stock Price Index (KOSPI) was down 0.07 percent at 1,965.81 points at 0225 GMT. South Korea's central bank, in a widely expected decision, kept its policy interest rate on hold to assess the effects of this year's two rate cuts as well as policy decisions by the United States and Japan. Recently laggard construction shares outperformed, buoyed by expectations of an earnings rebound beyond the fourth quarter. Hyundai Engineering & Construction was up 6.6 percent and GS Construction 4.2 percent. "Builders have many backlogged orders to fulfill overseas and on the domestic front, many older properties are now entering into a renewal cycle," Kyobo Securities said in a note to clients. Hyundai Motor was up 1.7 percent, extending to more than 7 percent its gains since Tuesday, when the automaker, along with sister firm Kia Motors and parts affiliate Hyundai Mobis, announced a $615 million share buy-back plan. The South Korean won was in a holding pattern on Thursday morning, as dollar bulls took a breather following a rally. The won was quoted at 1,096.2 to the dollar as of 0225 GMT, little changed from Wednesday's closing rate of 1,096.0 and hovering just above a 14-month low. Chinese industrial output and retail sales data is due out later in the session as well as figures on U.S. jobless claims. The yen/won cross-rate was up by a whisker, but still below a key psychological level of 9.5 won to the yen, with a slew of recent comments from government officials adding to worries that a weakening yen could undercut South Korea's export competitiveness. December futures on three-year treasury bonds shed 4 basis points to trade at 107.84. 0225 GMT Prev close Dollar/won 1,096.2 1,096.0 Yen/won 9.4853/896 9.4766 *KTB futures 107.84 107.88 KOSPI 1,965.81 1,967.27 * Front-month futures on three-year treasury bonds original source: http://www.reuters.com/article/2014/11/13/markets-southkorea-idUSL3N0T31WZ20141113