S.Korean won jumps on rescue moves, gov't caution

(Updates to early morning)

SEOUL, Oct 13 (Reuters) - South Korean won jumped as much as
6.9 percent against the dollar early on Monday as global central
banks and government took measures to solve the financial crisis
in the world, lifting Seoul shares.

Investors remained wary of possible dollar-selling
intervention by South Korea's foreign exchange authorities and
exporters were expected to buy the won <KRW=> for settlements.

But the local currency lost some of its early gains as
foreign investors continued to sell local stocks and on
persistent worries about dollar funding shortage in the domestic
swap markets.

The South Korean currency was quoted at 1,265.9/6.3 per
dollar as of 0050 GMT, compared with Friday's domestic close
<KRW=KFTC> of 1,309. It rose to as high as 1,224.8.

"Stabilisation in world markets on a global coordination to
rescue financial sectors will support the won. But the unit is
expected to ride a roller coaster again as investors remain
cautious over a credit crunch," said an analyst at a local
futures firm.

On Sunday, countries from Europe to Australia rushed out
plans to shore up their banks, trying to halt a markets crash
with pledges to back lending, buy stakes in financial
institutions and take other emergency steps. [ID:nLC713950]

That helped South Korean shares .KS11 rise 2.3 percent
although foreign investors sold a net 141.7 billion won worth of
stocks in the country's main exchange.

Foreigners sold a combined net 1.42 trillion won during the
previous eight consecutive sessions.

South Korea's financial authorities continued to assert that
the country would not face a financial crisis.

Finance Minister Kang Man-soo told Reuters in an interview
that the country's $240 billion in foreign exchange reserves and
the sound fundamentals of its banks and firms would enable it to
weather the global financial crisis. [ID:nN12404989]

0050 GMT prev close
Won <KRW=> 1,265.9/6.3 1,309
Yen/won <JPYKRW=R> 12.5620/40 13.2104/85
KOSPI .KS11 1,270.08 1,241.47
(Reporting by Cheon Jong-woo; Editing by Keiron Henderson)