SEOUL (Thomson Financial) - South Korean shares gained further ground in afternoon trade on Tuesday after the government released January data showing consumer confidence was at its highest level in more than five years, adding momentum to local trading after Wall Street's overnight advance. At 1:53 pm (0453 GMT), the KOSPI index was up 13.15 points or 0.8 percent at 1,653.82.

The National Statistical Office announced that the consumer expectations index, which measures sentiment for the next six months, rose to 105.9 in January from 104 in December. It was the strongest level recorded since September 2002, when it hit 106. A reading above 100 indicates that respondents who are optimistic about the economy, living conditions and consumption growth, outnumber those who are pessimistic. The latest monthly reading may signal a rise in consumer spending over the coming months, which should give critical growth momentum to the economy, especially at a time when investors fear a US recession would lead to a global economic slowdown. eunkyung.seo@thomson.com es/nt/zr es/nt/zr COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

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