HK stocks seen up, Construction Bank earnings eyed

HONG KONG, April 11 (Reuters) - Hong Kong stocks are expected
to rise on Friday, tracking gains in overseas markets, with China
Construction Bank (0939.HK: Quote, Profile, Research, Stock Buzz) in focus ahead of its earnings later
in the day and after a rosy profit forecast from China Merchants
Bank (3968.HK: Quote, Profile, Research, Stock Buzz).

Investors will be cautious, however, as they await key
economic data from China next week.

"The strength in the U.S. market together with a rebound in
the Japanese market are all positive for the Hong Kong market,"
said Patrick Yiu, associate director of CASH Asset Management.

"But I don't expect the market to rise sharply because
investors are waiting for major economic figures, such as CPI,
from mainland China next week to see if inflation has eased."

He expects the Hang Seng Index .HSI to rise up to 200
points for the day. The major resistance level in the short-term
should be 24,600 to 24,700, he added.

The benchmark Hang Seng index .HSI rose 0.84 percent to
24,187.10 on Thursday.

The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, gained 1.04 percent to 12,998.21.

STOCKS TO WATCH:

* Top LNG exporter Qatar signed on Thursday two landmark
deals to sell liquefied natural gas to Chinese oil giants
PetroChina (PTR.N: Quote, Profile, Research, Stock Buzz) and CNOOC (0883.HK: Quote, Profile, Research, Stock Buzz), its first such sales to
the world's second-biggest energy consumer. [ID:nPEK184556]

* China Coal Energy (1898.HK: Quote, Profile, Research, Stock Buzz) (601898.SS: Quote, Profile, Research, Stock Buzz), the country's No.
2 coal producer, is exploring investments in Australia and
Indonesia while it doubles spending to ramp up production and
feed the world's largest coal market.[ID:nHKG41965]

Citigroup upgraded China Coal to buy from hold as it plans
to sell more coal on the domestic spot market.

* China Merchants Bank (3968.HK: Quote, Profile, Research, Stock Buzz), a major commercial bank,
estimated that net profit surged at least 140 percent in the
first quarter of this year. [ID:nSHA210914]

* Yue Yuen Industrial (Holdings) (0551.HK: Quote, Profile, Research, Stock Buzz), a unit of Pou
Chen Corporation (9904.TW: Quote, Profile, Research, Stock Buzz), said its net consolidated operating
revenue, which is equal to the total sales less sales discount
and sales return, amounted to US$390.76 million in March, and its
net consolidated accumulative operating revenue for the three
months ended in March 2008 was at US$1.17 billion. For details
please see
here

* Beijing Capital Land (2868.HK: Quote, Profile, Research, Stock Buzz) has agreed to buy a
remaining 15 percent stake in Tianjin Banshan Renja Real Estate
Development Co for 124.35 million yuan. For details please see
here

* China Gas Holdings (0384.HK: Quote, Profile, Research, Stock Buzz) said it would invest 100
million yuan for the development of a natural gas project in
Yunfa city in Western Guangdong in Pearl River Delta Region.

* China's second-largest designer of software, Kingdee
International Software Group Ltd (0268.HK: Quote, Profile, Research, Stock Buzz), and its chairman were
selling up to $21.5 million worth of shares, according to a term
sheet obtained by Reuters. [ID:SHA197618]

FACTORS TO WATCH:
* Nikkei .N225 up 0.9 pct as Canon, tech shares gain ground[.T]
* U.S. stocks Technology, retail stocks fuel market rally [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil slips from record, Saudi says supplies ample [O/R]
* Dollar rises from record lows vs euro, eyes ECB [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)

CNOOC Ltd (CEO.N: Quote, Profile, Research, Stock Buzz)(0883.HK: Quote, Profile, Research, Stock Buzz) +4.3

China Mobile (CHL.N: Quote, Profile, Research, Stock Buzz)(0941.HK: Quote, Profile, Research, Stock Buzz) +3.3

China Telecom (CHA.N: Quote, Profile, Research, Stock Buzz)(0728.HK: Quote, Profile, Research, Stock Buzz) +2.8

Aluminum Corp (ACH.N: Quote, Profile, Research, Stock Buzz)(2600.HK: Quote, Profile, Research, Stock Buzz) +2.7

Sinopec (SNP.N: Quote, Profile, Research, Stock Buzz)(0386.HK: Quote, Profile, Research, Stock Buzz) +2.5
(US$1=HK$7.8)
(Reporting by Judy Hua; Editing by Anne Marie Roantree)