HK shares up 2.84 pct, financial stocks lead
HONG KONG, July 17 (Reuters) - Hong Kong shares will open 2.84 percent higher on Thursday, with financial stocks leading the rise after surprisingly strong earnings from a big U.S. bank and a drop in oil prices eased worries over the impact of credit losses and soaring fuel costs on company profits.
Financial stocks rose across the board after Wells Fargo (WFC.N), the No. 5 U.S. bank and a big mortgage lender, reported earnings that beat analyst estimates and helped U.S. bank shares post their best day in 16 years.
HSBC (0005.HK) and ICBC (1398.HK) both jumped 2.8 percent. Bank of China (3988.HK) soared 3 percent, despite a report by CLSA saying the Chinese lender may hold roughly $20 billion worth of bonds issued by troubled U.S. mortgage lenders Fannie Mae (FNM.N) and Freddie Mac (FRE.N).
The Hang Seng Index .HSI was set to open 601.74 points higher at 21,825.24.
The China Enterprises Index .HSCE of top locally listed Chinese firms will open 3.38 percent higher. (Reporting by Donny Kwok; Editing by Anne Marie Roantree)
