HK stocks seen advancing on Fed cut, earnings eyed

HONG KONG, March 19 (Reuters) - Hong Kong stocks should jump
on Wednesday in line with global equities, after the Federal
Reserve cut U.S. interest rates to the lowest since February 2005
and heavyweight HSBC Holdings (0005.HK: Quote, Profile, Research, Stock Buzz) is expected to track the
U.S. rally in global banks.

Investors will also be closely watch earnings reports due
later in the day by wireless carrier China Mobile (0941.HK: Quote, Profile, Research, Stock Buzz) and
top Asian oil producer PetroChina Co Ltd (0857.HK: Quote, Profile, Research, Stock Buzz).

The U.S. central bank cut rates by a hefty three-quarters of
a percentage point on Tuesday, giving a lift to stock markets.

"The Hang Seng should test the resistance level of 22,000,"
said Patrick Yiu, associate director at CASH Asset Management.

"China Mobile will have good results since subscriber growth
has been rising. Investors will be worried about 2008, but I
think it will still do well."

The Hong Kong Monetary Authority on Wednesday lowered the
base rate charged through its overnight discount window by 75
basis points to 3.75 percent [ID:nHKU000973]. Hong Kong's rates
tend to mirror U.S. rates since the territory's currency is
pegged to the U.S. dollar.

Meanwhile, China's central bank on Tuesday raised the amount
that lenders must hold in reserve for the fifteenth time since
the middle of 2006 [ID:nBJC000170].

The benchmark Hang Seng index .HSI rose 1.4 percent to
21,384.61 on Tuesday. The China Enterprises Index of Hong
Kong-listed mainland companies .HSCE gained 0.3 percent to
11,074.83.

STOCKS TO WATCH:

* China Mobile Ltd (0941.HK: Quote, Profile, Research, Stock Buzz) is expected to report a 19
percent rise in quarterly net profit due to healthy subscriber
growth [ID:SHA272099].

* Soaring oil prices should buoy second-half 2007 earnings at
China's energy majors, led by top Asian producer PetroChina Co
Ltd (0857.HK: Quote, Profile, Research, Stock Buzz). For earnings preview, click: [nHKG272878]]

* Top Chinese e-commerce firm Alibaba.com Ltd (1688.HK: Quote, Profile, Research, Stock Buzz) beat
forecasts with a 340 percent jump in 2007 net profit, thanks to
China's buoyant economy, increasing Internet access and growth in
the firm's number of paying members [ID:nSHA236206].

* Industrial and Commercial Bank of China
(601398.SS: Quote, Profile, Research, Stock Buzz)(1398.HK: Quote, Profile, Research, Stock Buzz) plans to issue about 8 billion yuan ($1.1
billion) of asset-backed securities in the interbank market soon,
traders said on Tuesday [ID:nSHA315542].

* China Merchants Bank (3968.HK: Quote, Profile, Research, Stock Buzz), China's sixth-largest
lender, posted a 127 percent rise in second-half earnings in
2007, beating expectations on the back of strong non-interest
income growth and lower credit costs [ID:nHKG317491].

* Cathay Pacific Airways Ltd (0293.HK: Quote, Profile, Research, Stock Buzz), Asia's No. 3 carrier,
said on Tuesday it won a tender for the development and operation
of a new cargo terminal in Hong Kong with total investment of
HK$4.8 billion ($618 million) [ID:nHKG278396].

FACTORS TO WATCH
* Nikkei .N225 up 2.8 pct, tracks Wall St gains [.T]
* Wall Street rallies as Fed cut, banks drive gains [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIAN]
* Oil rebounds over $109 after Fed cuts rates [O/R]
* Dollar posts biggest gain vs yen in nine years [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)

China South Air (ZNH.N: Quote, Profile, Research, Stock Buzz)(1055.HK: Quote, Profile, Research, Stock Buzz) +13.8

Huaneng Power (HNP.N: Quote, Profile, Research, Stock Buzz)(0902.HK: Quote, Profile, Research, Stock Buzz) +10.6

Sinopec Shanghai Petroleum (SHI.N: Quote, Profile, Research, Stock Buzz)(0338.HK: Quote, Profile, Research, Stock Buzz) +8.5

TOM Online (TOMO.O: Quote, Profile, Research, Stock Buzz)8282.HK +6.9

HSBC Holdings (HBC.N: Quote, Profile, Research, Stock Buzz)(0005.HK: Quote, Profile, Research, Stock Buzz) +6.3
(US$1=HK$7.8)