HONG KONG, June 8 (Reuters) - Hong Kong shares are expected
to rise on Monday after U.S. employment data showed fewer jobs
were lost last month, allowing investors to continue betting on
an economic recovery.
A government report said U.S. employers cut 345,000 jobs last
month, the fewest since September and far less than forecast,
suggesting the economy's severe weakness was diminishing.
[ID:nN05274048]
But other data showed the U.S. unemployment rate hit 9.4
percent, its highest since 1983.
Shares in China Eastern Airlines (600115.SS) (0670.HK) were
suspended from trading on Monday morning.
China Eastern and and Shanghai Airlines (600591.SS) have
started discussions on a merger between the two, the South China
Morning Post reported on Monday, citing Shanghai Airlines
vice-president Feng Xin.
The merger is expected to give China Eastern a 50 percent
market share in Shanghai.
The benchmark Hang Seng Index .HSI rose 1 percent TO
18,679.53 on Friday, with energy stocks leading gains as crude
oil hit a seven-month high.
STOCKS TO WATCH-
* China Shenhua Energy (1088.HK) said its shareholders had
granted directors a mandate to buy back up to 10 percent of its A
shares and H shares. For statement please click
here
* Garment trader and broadcasting equipment provider Rontex
International (1142.HK) said it planned to issue up to US$100
million convertible bonds to third-party investors in two
tranches, raising capital for development of a coal mine in
Russia. For statement please click
here
* SOHO China (0410.HK) said it would set up an operation and
management joint venture with third party Winbase Development Inc
to purchase and operate an office and retail property in Tianjin
with a total investment of 1.27 billion yuan ($185.9 million).
For statement please click
here
----------------------MARKET SNAPSHOT @ 2240 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 940.09 -0.25% -2.370
USD/JPY JPY= 98.73 0.16% 0.160
10-YR US TSY YLD US10YT=RR 3.8398 -- 0.000
SPOT GOLD XAU= 951.55 -0.39% -3.750
US CRUDE CLc1 67.86 -0.85% -0.580
DOW JONES .DJI 8763.13 0.15% 12.89
ASIA ADRS .BKAS 112.54 0.21% 0.24
-------------------------------------------------------------
MARKET SUMMARY
*Oil, global stocks gain on strong U.S. jobs data [ID:nN05282128]
*Oil falls after touching 7-month high over $70 [ID:nSIN265486]
*Dollar posts sharp gains after U.S. jobs report [ID:nN05495607]
*Treasuries fall on less-than-forecast job losses [ID:nN05421126]
(Reporting by Parvathy Ullatil; Editing by Chris Lewis)
