REFILE-HK shares seen higher on lower crude prices
(refiles to fix day of week in first paragraph)
HONG KONG, Aug 11 (Reuters) - Hong Kong shares are seen moving higher on Monday, after lower oil prices triggered a rally in the global equity markets.
But caution ahead of the release of key economic indicators in mainland China could limit gains.
U.S. stocks soared on Friday, with the Dow Jones industrial average .DJI rising 2.7 percent, rounding out their best week in more than three months, as oil plunged below $115 a barrel to ease inflation concerns and improve prospects for business and consumer spending.
Crude oil topped $116 a barrel on Monday, rebounding from the previous session's decline on concern that fighting between Russia and Georgia could disrupt energy exports from the Caspian region.
"Hong Kong will join the stronger dollar, weaker oil-fuelled rally in the global markets," said Ben Kwong, chief operating officer at KGI Asia.
He added that Hong Kong's benchmark index .HSI should stay slightly above 22,000 points on Monday, with resistance at the ten-day moving average of 22,300-22,400.
Hong Kong shares fell 1 percent to 21,885.21 on Friday, led by Chinese stocks as the Shanghai market nosedived to a 19-month low on worries about economic deceleration after the Olympics.
STOCKS TO WATCH-
*Goldman Sachs upgraded Esprit Holdings (0330.HK) to buy from neutral as it sees the lower organic growth rate of the company already priced into its forward earnings estimate.
Analysts at the U.S. investment bank also expect a relief rally in Esprit shares after the company announces its first half earnings on Aug 27.
* China Eastern Airlines Corp Ltd (600115.SS) (0670.HK) said it will continue to seek a big-name strategic investor following the expiry of an agreement for a 24 percent stake sale to Singapore Airlines Ltd (SIAL.SI) and Singapore investment agency Temasek. For statement please see here
* Chinese oil rig maker Honghua Group Ltd (0196.HK) said on Sunday it would sell drill rigs to Well Drilling Co Ltd for more than US$200 million, representing about 40 percent of its total assets as of the end of December 2007. For a statement please see here
* Athletic shoe-maker Yue Yuen Holdings (0551.HK) said late on Friday its net consolidated operating revenue amounted to US$445.5 million for July, while its net consolidated accumulative operating revenue for the first seven months of 2008 was at US$2.93 billion. For statement please see here * China National Offshore Oil Corp the parent company of CNOOC (0883.HK) and China National Petrochemical Corp the holding company of Petrochina (0857.HK) are joining forces to bid for an Angolan oil and gas asset owned by U.S. Marathon Oil Corp that is expected to fetch about US$1.5 billion, the South China Morning Post reported, citing unidentified sources
* Langham Hotels International, the 5-star hotel flagship of Great Eagle Holdings (0041.HK), expects to have 8 hotels under construction in mainland China in the next 6 months, according to the group's vice president Brett Butcher. ----------------------MARKET SNAPSHOT @ 2311 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1296.32 2.39% 30.250 USD/JPY JPY= 109.97 -0.35% -0.390 10-YR US TSY YLD US10YT=RR 3.939 -- 0.000 SPOT GOLD XAU= 861.1 0.67% 5.750 US CRUDE CLc1 116.36 1.01% 1.160 DOW JONES .DJI 11734.32 2.65% 302.89 ASIA ADRS .BKAS 140.96 1.82% 2.52 -------------------------------------------------------------> > Wall St Week Ahead: Cheaper oil may lift stocks; CPI on tap[.N] > FOREX-Dollar strong in Asia as bears capitulate [USD/] > TREASURIES-Bonds decline as oil retreat fuel stocks surge [US/] > Gold ends near three-month low as dollar soars [GOL/]
(Reporting by Parvathy Ullatil; Editing by Dominic Whiting)
