Seoul shares trim loss; techs, defence issues gain

* KOSPI falls 0.26 percent, but trims earlier 1.6 pct loss

* Defence issues rally after North Korea missile news

* Techs up on favourable product pricing, earnings hopes (Updates to mid-morning)

SEOUL, July 3 - Seoul shares fell on Friday after bleak U.S. jobs data and as North Korea's firing of short-range missiles weighed on sentiment, but shares trimmed earlier losses of as much as 1.6 percent supported by defence and tech issues.

The Korea Composite Stock Price Index (KOSPI) was down 0.26 percent at 1,407.76 points as of 0143 GMT.

"U.S. jobs data dented brewing hopes of an economic turnaround, but share losses were limited as investors here did not necessarily take it as a sign of a further slowdown of global economies. Belief that economic fundamentals are near their bottom is still firm here," said Won Jong-hyuck, a market analyst at SK Securities.

U.S. employers cut 467,000 jobs in June, far more than expected while the unemployment rate rose to 9.5 percent, the government said in a report that showed a labour market continuing to struggle with a deep recession.

"News of North Korea's short-range missile launch has limited impact on markets as participants view it as a political issue with limited implications for stocks markets, for now," Won added.

North Korea test-fired four short-range missiles on Thursday, further stoking already high regional tension due to its nuclear test and threats to boost its nuclear arsenal in response to UN sanctions.

Shares in defence issues including Huneed Technologies and Victek rallied after the North Korean missile tests news.

Huneed, a manufacturer of wireless communications equipment for military purposes, was up 3.88 percent and Victek, a maker of military equipment parts, jumped 6.01 percent.

But shares in energy issues declined across the board after a near 4 percent loss in U.S. crude futures overnight, fuelling worries about crude product demand.

SK Energy, South Korea's top crude refiner, fell 0.62 percent, and GS Holdings, holding company of South Korea's No. 2 crude refiner GS Caltex, fell 1.01 percent.

Meanwhile, key technology issues including Hynix Semiconductor and LG Display rose amid earnings hopes for South Korean tech firms.

Hynix Semiconductor gained 1.71 percent after key DRAM memory chip spot prices advanced in a range of 1 to 2 percent, according to DRAMeXchange, an electronic parts research firm.

LG Display, the world's No. 2 maker of liquid crystal display (LCD), climbed 2.93 percent.

"Thanks to steadily robust demand for LCDs, LG Display's earnings are expected to come out solid in both the second and third quarter," said Lee Sung-joon, an analyst at SK Securities.