HK stocks seen up on lower oil, easing US jitters

HONG KONG, May 30 (Reuters) - Hong Kong stocks should rise on
Friday, with energy and transport plays in focus on lower oil
prices and after stronger-than-expected U.S economic growth data
eased worries about a recession in the world's largest economy.

"The market should remain firm given the good news from the
U.S., and lower oil, but trading volumes may still be thin," said
Alex Tang, research director at Core Pacific-Yamaichi
International.

"It seems many investors think Hong Kong's market is fairly
valued, and there is not a lot of money coming in. Today we may
see gains in aviation and transportation stocks, and oil
refineries, but 25,000 is still a strong resistance level."

Oil prices dropped $4 on Thursday as concerns about global
energy demand and strength in the dollar countered a government
report showing the biggest decline in U.S. stockpiles since 2004.
[ID:nSP171886].

On Thursday, the benchmark Hang Seng Index ended up 0.55
percent at 24,383.99, helped by a 4.2 percent rise in Asia's top
refiner Sinopec (0386.HK).

The China Enterprises Index of Hong Kong-listed mainland
companies, or H shares, rose 1.03 percent to close at 13,511.86.

STOCKS TO WATCH:

* Hang Seng Bank Ltd (0011.HK) said on Thursday it would
launch the first fund to give Hong Kong's retail investors access
to mainland Chinese government bonds and, by extension, potential
gains in the yuan currency.

The Hong Kong bank said the fund, the first of its kind
approved by the territory's regulators, will invest primarily in
Chinese government, central bank and policy bank bonds.

* Major Chinese appliance maker Qingdao Haier Co (600690.SS)
said it was in talks with Deutsche Bank (DBKGn.DE) to buy the
German bank's 20.1 percent stake in sister company, Hong
Kong-listed Haier Electronics Group Co (1169.HK).

The talks over the purchase of the 393 million shares in
Haier Electronics have not yet reached any conclusion, Qingdao
Haier said.

* Consumer-focused conglomerate China Resources Enterprise
(0291.HK) said its shareholders had agreed to give a general
mandate to the directors to buy back up to 10 percent of the
issued share capital and to issue new shares of up to 20 percent
of the share capital. For details please see
here
----------------------MARKET SNAPSHOT @ 0023 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1398.26 0.53% 7.420
USD/JPY JPY= 105.47 -0.09% -0.090
10-YR US TSY YLD US10YT=RR 4.0788 -- 0.000
SPOT GOLD XAU= 877.4 0.11% 1.000
US CRUDE CLc1 126.31 -0.24% -0.310
DOW JONES .DJI 12646.22 0.41% 52.19
-------------------------------------------------------------
FACTORS TO WATCH:
* Nikkei .N225 up 0.5 pct as Toyota, exporters lead [.T]
* U.S. stocks- Market rises on oil's retreat, GDP revision c [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil falls $4, shrugs off U.S. supply drop [O/R]
* Dollar climbs to three-month high vs yen on GDP data [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)

APT Satellite ATS.N(1045.HK) +8.7

Sinopec Shanghai Petroleum (SHI.N)(0338.HK) +7.2

Sinopec (SNP.N)(0386.HK) +5.6

China South Air (ZNH.N)(1055.HK) +3.5

Huaneng Power (HNP.N)(0902.HK) +3.0
(US$1=HK$7.8)
(Reporting by Joseph Chaney; Editing by Anne Marie Roantree)