HK shares expected to rise on US jobs data
HONG KONG, Sept 7 (Reuters) - Hong Kong shares are expected to rise slightly on Monday, following Friday's rally on Wall Street, where investors focused on data showing fewer jobs cuts in August.
But trade is likely to be sluggish, with U.S. markets closed on Monday for the Labor Day holiday.
China Unicom (0762.HK) will be in focus after Spain's Telefonica (TEF.MC) said on Sunday it had reached a deal with China's No. 2 wireless operator whereby each would buy $1 billion worth of each other's shares as part of a strategic alliance.
The Spanish telecom company said its stake in Unicom would rise to about 8.06 percent, while Unicom would hold between 0.885 and 0.892 percent of Telefonica. [ID:nL642015]
U.S. job losses were the smallest in a year last month, coming in below forecasts at 216,000. But the unemployment rate rose to 9.7 percent from 9.4 percent the month before, the highest in 26 years and above expectations [ID:nN04159609].
The benchmark Hang Seng Index .HSI closed up 2.8 percent on Friday to post its biggest single-day gain in six weeks, after China increased the limit for stock investments by foreign funds to $1 billion in a show of support for the market.
But the move is expected to have a limited impact, seem as more of a symbolic gesture, with the overall investment quota of $30 billion kept intact.
STOCKS TO WATCH-
* Broad Intelligence International Pharmaceutical Holdings (1149.HK) said it would buy an integrated software, application and solutions provider in China, for HK$1.3 billion, a deal to be settled by issuance of new shares, convertible notes and cash. The firm said the deal would diversify its existing business into a new line. Trading in the shares will resume on Monday. For statement please click here
* PetroChina (0857.HK) said late on Friday it held 96.18 percent of Singapore Petroleum SPCS.SI as it closed an open offer and would exercise its right to acquire all outstanding shares it did not already own. It said it would apply to delist Singapore Petroleum from the Singapore Exchange. For statement please click here
* CNPC (Hong KONG) (0135.HK) said on Friday it was the successful bidder in the open tender for a 49 percent stake in Zhongyou Zhongtai, a city gas pipeline network constructor and operator in China, from the parent for 615.5 million yuan. For statement please click here
* Hembly International (3989.HK) said it expected to incur a loss for the first half of 2009 due to continuing downturn in the global economy and financial markets during the first half, which hit the luxury retail segments in China, and the company's internal restructurings have resulted in impairments and expenditures which will be reflected in the interim results. For statement please click here
----------------------MARKET SNAPSHOT @ 2243 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1016.4 1.31% 13.160 USD/JPY JPY= 93.03 0.09% 0.080 10-YR US TSY YLD US10YT=RR 3.4452 -- 0.000 SPOT GOLD XAU= 992.8 -0.06% -0.600 US CRUDE CLc1 67.74 -0.41% -0.280 DOW JONES .DJI 9441.27 1.03% 96.66 ASIA ADRS .BKAS 120.91 1.08% 1.29 -------------------------------------------------------------
MARKETS SUMMARY *Wall St gains for 2nd day; tech shares outperform [nN04187548] *Yen slips broadly after U.S. August jobs report [nN04187926] *Treasuries down on jobs report [nN04159733] *Oil data suggests no need for OPEC output change [nL4653661]
(Reporting by Parvathy Ullatil; Editing by Ken Wills)
