HK shares headed higher for fourth straight day

HONG KONG, April 16 (Reuters) - Hong Kong shares are expected
to move higher for a fourth straight session on Thursday with key
data from China expected to flag a recovery in the economy.

China's first-quarter gross domestic product data, slated for
release at 0200 GMT, is expected to show the economy grew at its
slowest pace in 16 years but quarter-on-quarter growth will
likely point to a recovery. [ID:nLF374126]

Speculation has been rife in recent days that Beijing might
announce a new spending package focused on boosting consumption
to follow up the 4 trillion yuan ($585 billion), two-year
stimulus plan it announced last November.

Market watchers expect the main index to break through the
16,000-point level in the near term, shooting past its year high
of 15,763.55 hit in January.

"This is a liquidity-driven market and the technical trend
points to still more buoyancy. The index can still move above
16,000 points after which we should see a strong correction,"
said KGI Asia COO Ben Kwong.

"Even if the GDP data is not competely satisfactory, there is
a very real chance investors will brush that off and carry on
buying," he said.

On Wednesday, the benchmark Hang Seng Index .HSI finished
0.6 percent higher at a six-month closing high of 15,669.62 on
hopes China will extend further help to domestic industries.

STOCKS TO WATCH-

* China Southern Airlines (1055.HK) late on Wednesday said
its parent, China Southern Air Holding Co., would apply for
another government cash injection to shore up the company's
financial position.

Southern Airlines received a 3 billion yuan cash injection
from the government last November to support the airline's
operations amid rising costs and weak market conditions.

* China's top juice maker Huiyuan (1886.HK) still has high
hopes of finding a strong partner after Beijing rejected
Coca-Cola's acquisition attempt, its chairman was reported as
saying on Thursday.

Chairman Zhu Xinli said Coca-Cola's (KO.N) bid had greatly
boosted Huiyuan's reputation and that it was now being courted by
even more companies. [ID:nPEK354462]

* China Eastern Airlines (0670.HK) (CEA.N) (600115.SS)
reported a net loss of 15.3 billion yuan in 2008, compared with a
profit of 378.6 million yuan the year before. For statement
please see
here

* Maanshan Iron (0323.HK) (600808.SS) said net profit fell to
710.2 million yuan in 2008, from 2.5 billion yuan in the year
before. For statement please see
here

* Morning Star Resources (0542.HK) on Wednesday said it
intended to seek shareholder approval for its unit's possible
acquisition of shares in Bank of East Asia (0023.HK). For
statement please click
here

* China Timber Resources Group (0269.HK) said its subsidiary
had agreed to buy a property developer for HK$986 million from
China Alliance. For statement please click
here

* Galaxy Entertainment Group (0027.HK) said it would incur a
further non-cash writedown for the company's intangible assets as
of December last year, which was expected to have a material
adverse effect on the company's financial results in 2008. For
statement please click
here

* China Agri-Industries Holdings (0606.HK) said it would
invest 56.6 million yuan in a joint venture with its subsidiary.
For statement please click
here

----------------------MARKET SNAPSHOT @ 2243 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 852.06 1.25% 10.560
USD/JPY JPY= 99.26 -0.11% -0.110
10-YR US TSY YLD US10YT=RR 2.768 -- 0.000
SPOT GOLD XAU= 889.15 -0.16% -1.450
US CRUDE CLc1 49.62 0.75% 0.370
DOW JONES .DJI 8029.62 1.38% 109.44
ASIA ADRS .BKAS 99.12 0.98% 0.96
-------------------------------------------------------------

MARKET SUMMARY
*Wall St climbs on signs recession easing [ID:nN15521460]
*OPEC says oil demand falling faster than f'cast [ID:nLF364904]
*Dollar gains as economic concerns persist [ID:nN15511778]
*Treasuries ease as rally hits proverbial wall [ID:nN15361637]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)