Hong Kong stocks seen up on lower oil prices

HONG KONG, May 28 (Reuters) - Hong Kong stocks should rise on
Wednesday, with energy and property plays in focus, after oil
prices fell on a stronger U.S. dollar, boosting Wall St. and
fuelling confidence about consumer and business spending.

"The market should continue to rise after the price of oil
fell below $130 -- that is the main factor" said Francis Lun,
general manager of Fulbright Securities.

"Higher oil prices have forced investors to sell recently,
but this will give them a reason to buy. Energy stocks will move
today, but there will be gains across the market. Cheap property
stocks should also rise."

Oil fell $4 to $128 a barrel on Tuesday, pulled down by the
stronger U.S. dollar and concerns that moves to cut Asian fuel
subsidies could hurt demand growth.

Lun predicted the market would climb 200 points by the end of
the day.

On Tuesday, the benchmark Hang Seng Index .HSI closed up
0.64 percent at 24,282.04, led by a 3.7 percent jump in oil and
gas producer CNOOC (0883.HK).

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, rose 0.82 percent to 13,330.08.

STOCKS TO WATCH:

* Bank of America Corp (BAC.N) said on Tuesday it would
exercise part of an option to buy shares of China Construction
Bank (0939.HK), investing HK$14.52 billion (US$1.86 billion) and
raising its stake in China's second-largest bank to 10.75
percent.

Bank of America, the No. 2 U.S. bank by assets, said it
intended to buy 6 billion of CCB's Hong Kong-listed shares around
June 5 for about HK$2.42 each under a formula set when it first
agreed to buy a 9 percent stake in CCB investment in June 2005
for US$3 billion.[ID:nN27371888]

* China Power International Development (2380.HK) said it
planned to buy a 63 percent stake in hydro power producer Wu Ling
Power Corp from parent, a move to enlarge its operational scale
to boost capacity and to enter into new markets in China's Hunan
and Guizhou.

Wu Ling Power has a registered capital of 3.5 billion yuan
($503.7 million). For details please see
here

* Shun Tak Holdings (0242.HK), a firm controlled by Macau
gaming tycoon Stanley Ho, with interests ranging from property to
transportation, said it would buy development rights of a vacant
site in Macau's Nam Van for HK$3.15 billion, a deal to be
financed internal resources and banking facilities. For details
please see
here

* Jiangxi Copper Co (0358.HK), China's top integrated copper
producer, and China Metallurgical Group Corp, have entered into
an $808 million mining contract with Afghanistan's government
for the right to exploit minerals in a large copper mine field in
the Central and Western mineralized zones in Aynak Mine for a
period of 30 years. For details please see
here
----------------------MARKET SNAPSHOT @ 0022 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1385.35 0.68% 9.420
USD/JPY JPY= 104.18 -0.08% -0.080
10-YR US TSY YLD US10YT=RR 3.9207 -- 0.000
SPOT GOLD XAU= 905.8 0.11% 1.000
US CRUDE CLc1 128.39 -0.36% -0.460
DOW JONES .DJI 12548.35 0.55% 68.72
ASIA ADRS .BKAS 161.51 0.26% 0.42
-------------------------------------------------------------
FACTORS TO WATCH:
* Nikkei .N225Oki awash with buy orders on chip deal report[.T]
* U.S. stocks-Tech jump, oil drop lifts Wall St; AMR skids [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil drops $4 to $128 a barrel on dollar gains [O/R]
* Dollar rises broadly on housing data, oil drop [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]

KEY HK ADR MOVERS (by % change)

Semiconductor Mfng (SMI.N)(0981.HK) +10.7

China East Air (CEA.N)(0670.HK) +8.05

APT Asia Satellite SAT.N(1135.HK) +7.1

China South Air (ZNH.N)(1055.HK) +5.2

TomoTherapy (TOMO.O) +2.9
(US$1=HK$7.8)
(Reporting by Joseph Chaney; Editing by Anne Marie Roantree)