HK shares seen gaining; property stocks eyed

HONG KONG, May 29 (Reuters) - Hong Kong shares are seen
higher on Friday, helped by overnight gains on Wall Street and
higher oil prices, which are seen supporting energy and other
resource-linked stocks.

Oil surged past $65 per barrel on Thursday and held close to
that level in Asian trade Friday after oil cartel the
Organisation of the Petroleum Exporting Countries decided to keep
ouput unchanged and government data showed a steep drop in U.S.
crude inventories.

Local property stocks, which clocked up hefty gains earlier
this week, will likely stay in focus on reports of strong sales
at a newly launched residential project, which suggests that
investors are prepared to return to the market to take advantage
of the low-interest-rate environment.

Sino Land's (0083.HK) Lake Silver residential project in the
New Territories sold more than 1,000 flats over the last two
days, local newspapers reported, while total home sales between
May 1 and May 26 came in close to 11,000 units, the highest since
Feb 2008.

The benchmark Hang Seng Index .HSI shot up 5.3 percent to
an eight-month closing high in resurgent volumes on Wednesday.
The market was closed on Thursday for the dragon boat festival
holiday.
STOCKS TO WATCH-

* Manulife Financial (0945.HK) (MFC.TO) on Friday said it
planned to issue $1 billion in 4.89 percent medium-term notes
maturing in June 2014, raising capital to reduce amounts
outstanding under Manulife's credit facility with Canadian
chartered banks and for general corporate purposes
[ID:nWNAB4455]. For statement please click
here

* Beijing Enterprises (0392.HK) said late on Thursday it had
applied to list HK$2.175 billion in 2.25 percent convertible
bonds due in 2014 on the Hong Kong stock exchange. The listing is
expected to begin on June 3. For statement please click
here

* Lianhua Supermarket Holdings (0980.HK) on Wednesday said Ma
Xin-sheng was elected as chairman, replacing Wang Zhi-gang who
quit the top post. For statement please click
here

* Smart Rich Energy (1051.HK) said late on Wednesday that it
had been informed by China Sci-Tech Holdings (0985.HK) (CST) that
the Foreign Investment Review Board of Australia had no objection
to CST's proposed acquisition of OZ Minerals Ltd's (OZL.AX)
interest in the Martabe Project, and the subsequent proposed
acquisition of the Martabe Project by Smart Rich. For statement
please click
here

* GOME (0493.HK) late on Wednesday said it was in
negotiations with potential investors in the company, but no
binding agreement had yet been reached. [ID:nHKG19640]

Trading in the shares will remain suspended pending further
statements on fundraising exercises and other price-sensitive
information.

Separately, the consumer appliances retailer reported a 37
percent drop in its first-quarter earnings to 321.99 million yuan
($47.15 million).

For statement please click
here
----------------------MARKET SNAPSHOT @ 2245 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 906.83 1.54% 13.770
USD/JPY JPY= 96.88 -0.03% -0.030
10-YR US TSY YLD US10YT=RR 3.6122 -- 0.000
SPOT GOLD XAU= 960.2 0.15% 1.400
US CRUDE CLc1 64.74 -0.52% -0.340
DOW JONES .DJI 8403.80 1.25% 103.78
ASIA ADRS .BKAS 109.55 1.99% 2.14
-------------------------------------------------------------

MARKET SUMMARY
*Wall St lifted by energy sector, easing bond yield
[ID:nN28369311]
*OPEC 'stays the course', oil rises above $65 [ID:nLS12120]
*Yen falls as Japan investors buy abroad, euro up [ID:nN28505976]
*Treasuries recover with issuance over for now [ID:nN28585843]

(Reporting by Parvathy Ullatil; Editing by Chris Lewis)