HK shares to stabilise on bargain hunting, lower oil

HONG KONG, July 16 (Reuters) - Hong Kong shares are likely to stabilise from the previous session's sharp losses on Wednesday, after U.S. technology companies surprised investors with better-than-expected earnings and mounting concern over the U.S. economy sent oil prices tumbling.

Investors will also focus on the market debut of Macau tycoon Stanley Ho's casino flagship, SJM Holdings Ltd (0880.HK), after it raised $494 million in an initial public offering.

Overnight, the Dow industrials closed below 11,000 for the first time in two years as doubts about a U.S. plan to rescue mortgage finance companies Freddie Mac and Fannie Mae hurt financial stocks and falling oil prices hurt some energy shares.

But bringing cheer to the beaten market, Intel (INTC.O), the world's biggest chip maker, reported stronger-than-expected results after the market closed and Sun Microsystems (JAVA.O) posted preliminary results that pleased investors. [ID:nN15370851]

Oil dropped more than $6 on Tuesday, the largest drop in dollar terms in 17 years after U.S. Federal Reserve Chairman Ben Bernanke said financial markets were under "considerable stress", adding to concerns about the strain of the weak housing market and high energy and food prices on the U.S. economy.

Hong Kong shares slid 3.8 percent to their lowest close in nearly four months on Tuesday at 21,174.77, as investors hit the panic button amid concern over further fallout from the credit crisis and Chinese banks' possible exposure to troubled U.S. mortgage lenders.

STOCKS TO WATCH * China's top electricity provider, Huaneng Power International (0902.HK), said it estimated it may have made a first-half loss as record-high coal prices hit profits. [ID:nHKG178012] here * Following Huaneng, Huadian Power International Corp (1071.HK) said it expected to post a net loss in the first half of 2008 due to high coal prices and no adjustment on tariffs. here

* Shares in Ping An Insurance (2318.HK)(601318.SS) may add to Tuesday's 7.1 percent drop after Fortis (FOR.AS) dropped 11.4 percent, hurting the Chinese insurer's 4.99 percent stake in the bank. The Belgian-Dutch financial services company denied needing fresh capital and said the solvency measures announced at the end of June were adequate, after its shares plunged on concerns it might have to raise more funds. [ID:nL1536610]

* Joining the long list of companies issuing profit warnings for the first half, Dore Holdings Ltd (0628.HK) said it expected to record a substantial loss for the year ended March 2008, due to an impairment loss in respect of intangible assets. here

* Air China Ltd (0753.HK)(601111.SS) said it would buy 15 Boeing 777 and 30 Boeing 737 aircraft with a total listed price of US$6.3 billion. But the airline expects to receive concessions that will lower this price. [ID:nSHA199605] here

* Top government officials are set to meet this week to discuss steps to tackle runaway inflation, reported the South China Morning Post. The meeting follows June data which showed a slowdown in China's economic growth.

Beijing would probably allow the yuan to appreciate more slowly and relax controls on fuel price increases, the newspaper said, quoting a source close to the National Development and Reform Commission said. ---------------MARKET SNAP SHOT @ 23:19 GMT ------------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1,214.91 -1.09 -13.390 USD/JPY JPY= 104.72 0.09 0.090 10-YR US TSY YLD US10YT=RR 3.830 -- 0.000 SPOT GOLD XAU= $976.65 0.01 0.050 US CRUDE CLc1 $138.73 -0.01 -0.010 DOW JONES .DJI 10962.54 -0.84 -92.65 ASIA ADRS .BKAS 140.78 -2.07 -2.97 -------------------------------------------------------------> SE Asian Stocks-Fall on Fannie, Freddie fears [.SO] > FOREX-Dollar dives to record low vs euro [USD/] > TREASURIES-Bonds rise as forecasts for Fed rate hike pared[US/] > Gold ends higher but off 4-mth high after oil drop [GOL/] > Oil plunges $6 on mounting US economic concern [O/R] > US STOCKS-Dow closed below 11,000 as bank fears mount [.N] (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)