Hong Kong shares to ease on profit-taking, Wall St fall

HONG KONG, May 8 (Reuters) - Hong Kong shares are expected to
open lower on Friday amid weaker market sentiment following
losses on Wall Street, with investors likely to take profits
after a six-day rally pushed shares to a seven-month high.

China's Geely Automobile Holdings (0175.HK) may be in focus,
after the company said it had no intention of bidding for
carmakers Volvo or Saab, according to a Hong Kong stock exchange
filing on Thursday. [ID:nHKG309232].

The stock surged 13.6 percent in Hong Kong on Thursday, amid
speculation it was a potential bidder for General Motors' (GM.N)
Swedish unit Saab as well as for Ford Motors' (F.N) Volvo unit.

The benchmark Hang Seng Index .HSI rose 2.28 percent on
Thursday to close at a seven-month high of 17,217.89 -- its best
closing level since October last year -- gaining ground for a
sixth consecutive session, as optimism about U.S. bank
stress-test results fuelled a sharp rally in shares of
heavyweight HSBC Holdings (0005.HK).

STOCKS TO WATCH

* China Construction Bank Corp (601939.SS) (0939.HK) will be
watched after Bank of America Corp (BAC.N) said it wanted to
remain a strategic partner with the Chinese lender and "always
have a substantial ownership position" in the bank. Analysts have
said Bank of America could post a $8 billion or larger gain from
selling its 16.6 percent stake. [ID:nN07447438].

* Manulife Financial Corp (MFC.TO) (0945.HK), Canada's
largest insurer, reported a larger quarterly loss on Thursday as
stock market declines and credit-related impairments took a toll.
[ID:nN07338021].

* Fashion retailer Giordano (0709.HK) late on Thursday said
it expected its results for the half year ending June 30 to be
significantly lower compared with the same period last year,
which will have a substantial negative impact on profit, as the
global financial crisis adversely affected consumer confidence in
all the company's markets. For statement please see
here
----------------------MARKET SNAPSHOT @ 2242 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 907.39 -1.32% -12.140
USD/JPY JPY= 99.14 -0.12% -0.120
10-YR US TSY YLD US10YT=RR 3.3397 -- 0.000
SPOT GOLD XAU= 910.45 0.15% 1.400
US CRUDE CLc1 56.43 -0.49% -0.260
DOW JONES .DJI 8409.85 -1.20% -102.43
ASIA ADRS .BKAS 106.48 -2.21% -2.41
-------------------------------------------------------------

MARKETS SUMMARY
*Tech, poor auction hits Wall St; banks up late [nN07403386]
*Oil closes at 6-month high on economic optimism [nSP407747]
*Treasuries dive on weak 30-yr sale, jobless fall [nN07406613]
*Euro rises to 1-month high vs dollar after ECB [nN07388826]
(Reporting by Sui-Lee Wee; Editing by Chris Lewis)