HK shares seen higher but flu fears may weigh

HONG KONG, June 12 (Reuters) - Hong Kong shares are seen
higher on Friday, boosted by encouraging U.S. economic data, but
gains may be capped as worries about a widespread flu pandemic
returned.

The World Health Organisation declared an influenza pandemic
on Thursday and advised governments to prepare for a long-term
battle against an unstoppable new flu virus.

Flu fears may take a toll on airline and hospitality stocks,
while boosting drugmakers.

News that U.S. retail sales rose in May for the first time in
three months and the number of workers filing new claims for
jobless benefits last week hit a January low are seen supporting
gains. [ID:nN11493029]

Resources-linked stocks may be boosted after crude futures
marked a fresh seven-month high above $73 per barrel a day
earlier on hopes for a recovery in the global economy and
forecasts of growth in oil demand. Oil fell towards $72 per
barrel on Friday as investors sought to lock in profit.

The benchmark Hang Seng Index .HSI shuffled sideways on
Thursday to close at 18,791.03 as local property stocks were
beaten down on worries about rising interest rates.

STOCKS TO WATCH-

* Oil and gas producer CNPC (Hong Kong) (0135.HK) on Friday
said it would set up a 75 percent-owned joint venture, Xing Jing
Bridge Energy Ltd, with China Xinjiang Recycle Energy Company Ltd
and China Hainan Hiran Hi-tech Energy Co., Ltd in China for a
total investment of 668 million yuan ($97.74 million).

The joint venture will engage in the collection of associated
gas generated from oilfields, which will then be utilised for the
production of compressed natural gas, liquefied natural gas and
hydrocarbon for sale in China.

For statement please click
here

* Hung Hing Printing (0450.HK) late on Thursday said its
results for the year ended March 2009 would be hit by losses in
its paper manufacturing business amid reduced demand for
packaging products, keen competition and volatility of commodity
waste-paper prices. For statement please click
here

* Pou Sheng International (3813.HK), a sportswear retailing
arm of Yue Yuen Industrial (0551.HK), warned of a substantial
reduction in profit for the six months ended in March 2009 on a
decrease in profit margins on higher discount offers and an
increase in selling and distribution expenses. For statement
please click
here

* Mingyuan Medicare Development (0233.HK) on Thursday said it
would team up with Chinese National Human Genome Center in
Shanghai and Shanghai Biochip Co., Ltd. to develop and produce
diagnostic kits for detecting Influenza A viruses including H1N1.

The Chinese partners successfully developed two advanced kits
for detecting the viruses, while the Hong Kong company would
register the kits with the Chinese authorities.

For statement please click
here
----------------------MARKET SNAPSHOT @ 2246 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 944.89 0.61% 5.740
USD/JPY JPY= 97.67 0.04% 0.040
10-YR US TSY YLD US10YT=RR 3.8622 -- 0.000
SPOT GOLD XAU= 954.65 0.07% 0.650
US CRUDE CLc1 72.34 -0.47% -0.340
DOW JONES .DJI 8770.92 0.37% 31.90
ASIA ADRS .BKAS 115.47 1.57% 1.78
-------------------------------------------------------------

MARKET SUMMARY
*World stocks rally on recovery hopes, oil soars [ID:nN11369619]
*Oil climbs over $73 on hopes for rising demand [ID:nSIN191080]
*Dollar falls broadly as risk appetite increases [ID:nN11512032]
*Solid long bond Treasury fuels rally [ID:nN11219495]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)