HK shares seen opening higher after 3-day slide
HONG KONG, June 13 (Reuters) - Hong Kong shares are expected to open higher on Friday, rebounding from three straight days of falls, but gains are likely to be trimmed on concern over Beijing's aggressive credit tightening stance and a possible increase in mortgage rates in Hong Kong.
Buying will be boosted by a higher close on Wall Street, helped by forecast-beating U.S. retail sales in May and a $46 billion takeover bid for Anheuser-Busch from rival beer maker InBev [ID:nN12346498].
But investors are not impressed by the mixed signals coming this week from China, where lower consumer inflation was balanced out by accelarating money supply and a rising producer price index.
"The inflation may be off its peak but it is still high. But the real concern is the rising PPI," said Alex Tang, research director with Core-Pacific Yamaichi International.
On Thursday, China said its consumer price index increased 7.7 percent in May, well below the 8.5 percent recorded in April but the mainland markets ignored the improved data to close at a 14-month low as investors feared further liquidity tightening measures from the government.
The Hang Seng Index closed 1.3 percent lower on Thursday at 23,023.86.
STOCKS TO WATCH
* Property stocks are expected to come under pressure on reports that local lenders may raise mortgage rates to offset surging interbank rates.
Most Hong Kong bankers said they were unlikely to raise interest rates before the U.S. Fed makes its next move but analysts speculate that the lenders may be forced to increase rates if deposits in the banks continue to fall.
* Shipping stocks will be watched after the Baltic Dry Index, which measures changes in the cost of shipping commodities, posted it biggest ever decline in over two decades.
* China Mobile (0941.HK) will be watched after local media reports said Asia' biggest wireless carrier was likely to acquire the fixed-line assets of China Tietong as part of the restructuring plan in the mainland telecom sector.
China Tietong owns the fixed-line networks along the nation's railroads.
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INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1,339.87 0.33% 4.380
USD/JPY JPY= 107.85 0.01% 0.010
10-YR US TSY YLD US10YT=RR 4.223 -- 0.008
SPOT GOLD XAU= $870.25 0.28% 2.450
US CRUDE CLc1 $136.70 -0.03% -0.040
DOW JONES .DJI 12141.58 0.48% 57.81
ASIA ADRS .BKAS 154.76 0.28% 0.43 -------------------------------------------------------------> US STOCKS-Market rises on retail sales, BUD deal [.N] > Oil rises on Nigeria strike threat [O/R] > Dollar up on retail data, euro off on rate outlook [USD/] > Bonds slide on unexpectedly strong retail sales [US/] > Gold hits lowest level since early May [GOL/] > SE Asian stocks - Thailand hits 4-mth low, Vietnam up [.SO] (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)
