HK shares expected to open higher on lower oil
HONG KONG, June 16 (Reuters) - Hong Kong shares are expected to rise on Monday, after losing 7.4 percent last week, following a pullback in crude oil prices on Friday. [ID:nSP117427]
A statement from the Chinese capital markets regulator saying it was reviewing the possibility of further opening up its markets to foreign investors is also expected to provide a boost to investors in China and Hong Kong.
Mainland stocks led losses in Hong Kong last week after Beijing announced a harsher-than-expected credit tightening measure, taking investors by surprise and sending the Chinese markets tumbling.
Investors have since been looking towards the government for market-friendly measures to restore confidence and boost the battered stock market.
"Oil has eased, overseas markets have bounced back and China has said it will look at allowing more foreign investments. There is no reason for the Hong Kong markest not to rise today," said Francis Lun, general manager with Fulbright Securities.
U.S. markets rallied on Friday, helped by a government report that showed underlying price pressures rose moderately in May, easing fears of a near-term interest rate hike. [ID:nN13446212]
Hong Kong shares closed on Friday down 1.9 percent at 22,592.30, their lowest close since March 25.
The index is expected to claw its way back to the 23,000 level today.
STOCKS TO WATCH
* Shares in China Mobile (0941.HK), which were a major drag on the main index last week, are expected rebound on Monday. China Mobile Communications Corp, parent of listed company, is seen launching a tender for the next phase of the rollout of its homegrown 3G mobile network after the Olympic Games, the South China Morning Post said, citing sources.
3G has been touted as China Mobile's trump card post-restructuring and the company has been alowed to take the lead in introducing the third generation services to the nation.
* China Construction Bank (0939.HK) plans to consolidate two associated securities arms to compete with key rivals in the brokerage business, according to a report in the South China Morning Post.
* Oil and airlines stocks will be in focus after the recent oil price correction and on talk that key producer of the commodity Saudi Arabia was mulling increasing production. The price pullback will ease pressure on refiner Sinopec Corp (0386.HK) and airline stocks, while dragging upstream pure play CNOOC (0883.HK) lower.
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INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1,360.03 1.5% 20.160
USD/JPY JPY= 108.22 0.17% 0.180
10-YR US TSY YLD US10YT=RR 4.259 -- 0.000
SPOT GOLD XAU= $870.85 0.01% 0.050
US CRUDE CLc1 $134.27 -0.44% -0.590
DOW JONES .DJI 12307.35 1.37% 165.77
ASIA ADRS .BKAS 157.44 1.73% 2.68
------------------------------------------------------------- > US STOCKS-Market rallies as tame CPI calms fears [.N] > Oil edges lower as Saudi readies new output boost [O/R] > Dollar caps best week since 05 as inflation looms [USD/] > 2-yr yields in biggest weekly jump in 26 years [US/] > Gold closes higher on late short covering [GOL/] > SE Asian stocks - Mixed, plantation firms gains [.SO] (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)
