HONG KONG, Feb 12 (Reuters) - Hong Kong shares are likely to
be volatile on Thursday even as the massive U.S. stimulus plan
inches closer to approval, while weak trade data from China and
an overnight slide in oil prices will weigh on sentiment.
Following Tuesday's disappointment over the U.S.
government's bank resuce plan, Wall Street stocks rose on
Wednesday after lawmakers reached a compromise deal on a $789
billion stimulus package that is seen as crucial to reviving the
economy.
Crude oil prices fell 4 percent on Wednesday on expectations
of a sharp drop in demand and hovered around $36 per barrel in
early Asian trade on Thursday.
The benchmark Hang Seng Index .HSI fell 2.5 percent to
13,539.21 on Wednesday, snapping a five-day, 8 percent rally.
STOCKS TO WATCH-
* China's Mengniu Dairy (2319.HK) said on Thursday it is
liaising with the relevant authorities regarding the use of
additive "OMP" and "IGF-1" in its "Milk Deluxe" milk products.
The firm said the additive has been certified as safe by
authorities in the United States. It said sales of "Milk Deluxe"
accounted for 2 percent of its turnover in the last financial
year. For statement please click
here
* First Shanghai Investments (0227.HK) late on Wednesday
said it expected to record a loss in the second half of 2008 due
to widespread economic and financial uncertainty, which has had
a negative impact on most of the firm's business.
For statement please click
here
* Securities investment firm China Assets (0170.HK) said it
expected its financial results for 2008 to be adversely affected
by the global financial uncertainty and economic slowdown. For
statement please see
here
* Chinese truck maker Sinotruk (3808.HK) said four of its
subsidiaries have been recognised as hi-tech firms for tax
purposes by Chinese authorities. According to regulations,
hi-tech firms are entitled to pay the enterprise income tax at a
reduced tax rate of 15 percent for three years from 2008 to
2010. For statement please see
here
* TOM Group (2383.HK) said it would form a strategic
partnership with China Post Group to jointly develop e-commerce
business in China. For statement please click
here
* China Insurance International (0966.HK) said the
accumulated premium income of its unit, Tai Ping Life Insurance,
amounted to 1.96 billion yuan in January. For statement please
click
here
* Buyers of more than a hundred apartments in a joint
development by Sun Hung Kai Properties (0016.HK) and NWS
Holdings (0659.HK) are likely to cancel their purchases, the
Hong Kong Economic Journal reported, citing a director with a
property agency. The developers will cut prices by 20 percent to
resell those units, which account for about 7 percent of the
units sold.
----------------MARKET SNAPSHOT @ 00:08 GMT ------------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 833.74 0.8% 6.580
USD/JPY JPY= 90.27 -0.15% -0.140
10-YR US TSY YLD US10YT=RR 2.795 --- 0.002
SPOT GOLD XAU= $936.95 -0.15% -1.400
US CRUDE CLc1 $36.10 0.45% 0.160
DOW JONES .DJI 7939.53 0.64% 50.65
ASIA ADRS .BKAS 88.16 0.63% 0.55
-------------------------------------------------------------
> US STOCKS-Wall Street up as lawmakers near stimulus deal [.N]
> Oil down 4.3 percent as IEA predicts big demand drop [O/R]
> TREASURIES-Bank rescue doubts boost longer-dated bonds [US/]
> FOREX-Dollar rises vs yen, flat vs euro as stimulus eyed [USD/]
> Gold rises to 6-½ mth high on investment demand
[GOL/]
(Reporting by Parvathy Ullatil; Editing by Ken Wills)
(parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
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