HK shares seen moving up on oil, China banks

HONG KONG, July 18 (Reuters) - Hong Kong shares are set to rise on Friday, helped by retreating oil prices and talk that China will ease up on monetary tightening after June data showed a slowdown in economic growth.

"Local shares will move up for the second day in a row on the wings of gains in the U.S. markets. China banking shares will lead gains after data showed a slowdown in the economic growth last month," said Francis Lun, general manager with Fulbright Securities.

U.S. stocks extended gains on Thursday, with the Dow Jones industrial average climbing 1.85 percent, as oil prices dropped for the third consecutive session and banks rallied on stronger-than-expected results from JPMorgan Chase & Co (JPM.N).

U.S. crude oil sank for a third straight session on Thursday, closing below $130 a barrel as demand worries outweighed supply woes.

Hong Kong shares jumped 2.4 percent on Thursday, with financial stocks such as HSBC (0005.HK) leading the charge after U.S. bank shares posted their best day in 16 years, while lower oil prices lifted refiners and airlines.

STOCK TO WATCH:

* China Petroleum & Chemical Corp (Sinopec) (0386.HK) said late on Thursday its net profit for the first half of 2008 would fall more than 50 percent amid oil refinery losses due to high crude oil prices. Its net profit for the first half of 2007 amounted to 34.925 billion yuan. For statement please see here

* Sinopec Shanghai Petrochemical (0338.HK) said it expected to suffer a loss for the first half of 2008 on soaring crude oil prices. The company posted 1.75 billion yuan profit in the same period a year ago. For statement please see here

* Sinopec Yizheng Chemical Fibre Co Ltd (1033.HK) said it expected to suffer a loss in the first half of 2008, as raw materials costs increased amid soaring crude oil and domestic coal prices. It posted 50.03 million yuan profit for the first half of 2007. For statement please see here

* Ping An Insurance (2318.HK) will consider property and infrastructure investments overseas to diversify its investments outside of the mainland stock market, the South China Morning Post reported, quoting president Louis Cheung after a shareholders' meeting in Shenzhen.

* Foxconn International Holdings (2038.HK) may take a beating after its biggest customer, Nokia (NOK1V.HE), reported a 61 percent fall in earnings in the second quarter. ---------------MARKET SNAP SHOT @ 23:57 GMT ------------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1,260.32 1.2 14.960 USD/JPY JPY= 106.19 -0.04 -0.040 10-YR US TSY YLD US10YT=RR 3.995 -- 0.002 SPOT GOLD XAU= $958.15 0.16 1.550 US CRUDE CLc1 $130.10 0.63 0.820 DOW JONES .DJI 11446.66 1.85 207.38 ASIA ADRS .BKAS 145.91 0.14 0.20 ------------------------------------------------------------- US STOCKS-Market up on oil; earnings optimism fizzles [.N]> Oil extends slide below $130 on demand worries, Iran [O/R]> FOREX-Dollar rises with stocks as oil prices plunge [USD/]> Bonds fall as stocks rise with easing credit fears [US/]> Gold ends lower as oil plummets, stocks recover [GOL/] (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)