HONG KONG, Aug 3 (Reuters) -Hong Kong shares are seen
drifting on Monday following a week of strong gains, as key
corporate earnings begin to trickle in this week.
Europe's largest lender HSBC Holdings (0005.HK) and its local
unit Hang Seng Bank (0011.HK) will kick off the interim earnings
season for banks on Monday.
HSBC, which in March went to the market with a massive cash
call, is expected to report a sharp drop in first-half profit or
even record a loss for the preiod on the back of bad loans at its
U.S. unit.
Companies continued to flag sharp declines in bottom lines
for the quarter, with the latest being China Shipping Container
Lines Co Ltd (2866.HK), which said on Friday that it expected to
see a loss in the first half of 2009 because there had been no
obvious improvement in market demand for international container
shipping.
It posted a profit of about 699 million yuan ($102.3 million)
for the first half of 2008 in accordance with Chinese accounting
standards.
The benchmark Hang Seng Index .HSI extended its rebound on
Friday after a sharp drop mid-week, to rise 1.7 percent, ending
its fifth straight month of gains on a strong note.
Wall Street investors were measured in their reaction to
better-than-expected economic data as a report showed U.S.
consumer reined in spending during the second quarter
STOCKS TO WATCH-
* China Railway Group Ltd (601390.SS) (0390.HK) said on
Sunday it would consider a US$7.5 billion contract as contractor
for a railway design and construction project in Venezuela.
[ID:nHKG150480]
* China National Resources Development Holdings Ltd (0661.HK)
said late on Friday that it was in negotiations with the
government of Xinjiang Ili Kazakh Autonomous Prefecture to sign a
strategic cooperation framework agreement related to the
consolidation and development of nonferrous metals resources in
the prefecture. For statement please click
here
* China Construction Bank Corp (0939.HK) said last Friday
that it had appointed Chen Zuofu as executive director. For
statement please click
here
* China Southern Airlines (1055.HK) said it would sell six
Airbus A300-600R aircraft and five Pratt & Whitney Model PW4158-3
Turbofan Spare Engines and spare parts for about US$125 million.
For statement please click
here
* China Resources Land (1109.HK) said late on Friday that it
would buy sites in Shenyang, Beijing and Fuzhou for HK$3.57
billion. For statement please click
here
----------------------MARKET SNAPSHOT @ 2242 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 987.48 0.07% 0.730
USD/JPY JPY= 94.71 -0.02% -0.020
10-YR US TSY YLD US10YT=RR 3.4815 -- 0.000
SPOT GOLD XAU= 952 -0.20% -1.900
US CRUDE CLc1 69.17 -0.40% -0.280
DOW JONES .DJI 9171.61 0.19% 17.15
ASIA ADRS .BKAS 120.24 0.88% 1.05
-------------------------------------------------------------
Market Summary
*Oil gains on economic optimism, dollar hits low [nN31444540]
*Dollar drops broadly; month-end, U.S. data weigh [nN31435146]
*Treasury bond prices climb in safe-haven buying [nN31437660]
*U.C. stocks, oil gain on GDP data, dollar slips [nN31433153]
(Reporting by Parvathy Ullatil; Editing by Chris Lewis)
