HK shares tipped to fall; US data eyed
HONG KONG, Dec 1 (Reuters) - Hong Kong shares are expected to ease on Monday after a four-day 11.5 percent rally last week, with investors still worried over the weak global economy.
"We will fall a little bit today, probably by 200 points. We had a strong four straight days of gains last week and that's a bit too much. People are still waiting for signs of an economic revival in the U.S.," said Francis Lun, general manager at Fulbright Securities.
Investors will also be cautious ahead of a raft of U.S. data this week, including the November jobs report, that will likely provide more evidence of a deep economic downturn.
Hong Kong shares rose 2.5 percent on Friday, with the benchmark Hang Seng Index .HSI closing up 336.18 points at 13,888.24.
STOCKS TO WATCH
* Consumer goods exporter Li & Fung (0494.HK) said on Sunday it would buy Miles Fashion Group, a German apparel supplier to some of the largest discounters and retail chains in Europe, for $51 million in cash.
* Telecommunications company PCCW Ltd (0008.HK) has no plans to lay off staff and remains confident of maintaining its usual capital expenditure level despite the financial crisis, the Standard newspaper reported, quoting the group's managing director, Alex Arena.
* Yanzhou Coal (1171.HK) said on Friday it would seek shareholders' approval for its plan to buy back up to 10 percent of its H shares in a meeting on Jan. 16. For statement please see here
* China Railway Construction Corp (1186.HK) said on Friday it would seek shareholders' approval on Jan. 13 for its plan to issue up to 15 billion yuan worth of 10-year medium term notes in the next two years on the mainland. For statement please see here
* Cross-Harbour (Holdings) (0032.HK) said on Friday it would buy an indirect 39.5 percent stake in Tates Cairn Tunnel Co, operator of the city's Tates Cairn Tunnel, from China Resources (Holdings) for HK$555 million in cash in an effort to secure another steady revenue for the firm. For statement please see here * Private equity firm Kohlberg Kravis Roberts plans to invest US$300 million in a dairy business in China, of which the equity fund will inject $100 million and has arranged $200 million in debt financing from Chinese banks, the South China Morning Post reported, quoting sources. The deal will be announced later this month.
* China Resources (Holdings) has put off the launch of a $300 million offering for its cement unit in Hong Kong and will delay it to the first or second quarter of next year, the South China Morning Post quoted sources as saying. Focus media and Sina Corp (SINA.O) have also scrapped plans to spin off units in New York that could raise a total of $400 million, sources said.
----------------------MARKET SNAPSHOT @ 2311 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 896.24 0.96% 8.560 USD/JPY JPY= 95.5 0.01% 0.010 10-YR US TSY YLD US10YT=RR 2.9217 -- 0.000 SPOT GOLD XAU= 816.7 0.46% 3.700 US CRUDE CLc1 53.55 -1.62% -0.880 DOW JONES .DJI 8829.04 1.17% 102.43 ------------------------------------------------------------- > Wall St gains in thin trade, S&P up 12 pct for week [.N] > Dollar rises vs euro amid risk aversion, thin volume [USD/] > Bonds surge as economic worries spur safe-haven bid [US/] > Gold gains with equities in thin holiday trade [GOL/] > Oil rises on short-covering; down 20 pct in Nov [O/R] (Reporting by Jun Ebias; Editing by Anne Marie Roantree)
