HK shares seen tracking regional gains; oil in focus

HONG KONG, Nov 14 (Reuters) - Hong Kong shares are expected
to snap a three-day, 10 percent drop to rise on Friday, tracking
strong regional gains as investors step in to snap up beaten down
stocks.

Shares of Asia's biggest oil and gas firm, PetroChina
(0857.HK), and offshore oil producer CNOOC (0883.HK) could rise
after oil prices jumped more than 4 percent overnight on worries
OPEC may cut production again this month.

"Investors are generally still very cautious, but Hong Kong
stocks are very cheap, so we will see some bargain hunting
today," said Francis Lun, general manager at Fulbright
Securities.

The benchmark Hang Seng Index .HSI shed 5.1 percent on
Thursday to 13,221.35, a two-week low.

The key index may gain 700 points in a volatile trading
today, Lun said.

STOCKS TO WATCH

* China Southern Airlines (1055.HK) cut fuel surcharge on
route to Middle East by 50 percent to 550 yuan and 18 percent on
European route to 900 yuan per trip, the South China Morning Post
said on Friday.

* Cathay Pacific Airways (0293.HK) may delay completion of
its HK$4.8 billion third cargo terminal in Hong Kong for about a
year as it moves to preserve cash and wait out the global
economic slowdown, the South China Morning Post said, citing an
industry source.

* GOME Electrical (0493.HK) may miss its expansion target of
adding 160 new stores this year and will trim acquisitions next
year to preserve cash amid the global financial crisis, the South
China Morning Post said, quoting a company source.

* Melco International (0200.HK) said on Thursday its 37.84
percent-owned associate Melco Crown Entertainment (MPEL.O) posted
a sharp rise in net revenues to $295.2 million for the third
quarter of 2008, from $113.3 million a year ago, in which
revenues from its casino business jumped to $292.5 million from
$109.3 million. The increase was driven by improved performance
at Crown Macau, it said. For statement please see
here

* Giordano (0709.HK) said on Thursday it would tighten
expense budgets and control spending in the upcoming quarter and
next year to protect its bottom line. It said markets outside
China had started to feel the effects of the global financial
crisis, with Hong Kong, Taiwan and Singapore reporting sales
decreases in the third quarter. For statement please see
here

* Huadian Power (1071.HK) said on Thursday it would seek
shareholders' approval for its plan to issue up to 3 billion yuan
worth of medium-term notes or corporate bonds in China with
maturity of up to 10 years, raising proceeds for working capital
and as replacement finance for bank borrowings. For statement
please see
here

----------------------MARKET SNAPSHOT @ 2234 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 911.29 6.92% 58.990
USD/JPY JPY= 97.65 -0.01% -0.010
10-YR US TSY YLD US10YT=RR 3.8525 -- 0.115
SPOT GOLD XAU= 735.4 0.09% 0.650
US CRUDE CLc1 59.39 5.75% 3.230
DOW JONES .DJI 8835.25 6.67% 552.59
ASIA ADRS .BKAS 92.66 7.57% 6.52
-------------------------------------------------------------

MARKETS SUMMARY
*Wall St ends up over 6 pct on bargain hunting [ID:nN13378854]
*Oil rises 4 pct on OPEC, equity market rebound [ID:nSYD383548]
*Dollar falls vs euro on stable stocks, yen tumbles
[ID:nN13365847]
*Treasuries cut losses as stocks' slide boosts bid
[ID:nN13464024]

(Reporting by Jun Ebias and Donny Kwok; Editing by Anne Marie
Roantree)