HONG KONG, May 13 (Reuters) - Hong Kong stocks are expected
to rise on Tuesday, led by heavyweight HSBC Holdings (0005.HK)
after it reported better-than-expected results, although
investors may trade cautiously as officials assess the damage
from a massive earthquake in China's Sichuan province.
Nearly 10,000 people were killed by the earthquake that
hammered southwest China, officials said on Tuesday as rescuers
struggled to reach the worst-hit areas where many more may have
died. [ID:nL1281973]
"The earthquake in Sichuan may have some negative impact on
insurance companies and companies which have significant exposure
there, but it may not hamper company earnings on a large scale,"
said CASH Asset Management director Patrick Yu.
"Although China's CPI rose 8.5 percent in April, higher than
expected, but it has rumoured last week, so I don't think it will
have a very huge impact on the market again."
He expects the benchmark Hang Seng Index .HSI to range from
24,800 to 25,250 pointes for the day.
The Hang Seng Index fell 1.52 percent to close at 25,063.17
points on Friday, while the China Enterprises Index of Hong
Kong-listed mainland companies .HSCE, or H shares, fell 1.61
percent to 13,662.58. The market was closed on Monday for a
public holiday.
----------------------MARKET SNAPSHOT @ 2250 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1403.58 1.1% 15.300
USD/JPY JPY= 103.78 -0.05% -0.050
10-YR US TSY YLD US10YT=RR 3.7974 -- 0.000
SPOT GOLD XAU= 881.3 -0.07% -0.600
US CRUDE CLc1 123.8 -0.35% -0.430
DOW JONES .DJI 12876.31 1.02% 130.43
-------------------------------------------------------------
FACTORS TO WATCH:
* Nikkei .N225 opens up 0.5%,led by exporters on softer yen[.T]
* U.S. stocks-Tech rally, oil's fall drive Wall St's gains [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil falls from record high on China demand worries [O/R]
* Dollar up versus yen on risk demand, down vs euro [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]
STOCKS TO WATCH:
* China's annual consumer price inflation quickened to 8.5
percent in April from 8.3 percent in March, the National Bureau
of Statistics said on Monday. [ID:nBJB000086]
* Two more Chinese firms, Aluminum Corp of China Ltd
(2600.HK) (Chalco) and Tencent (0700.HK), will join Hong Kong's
blue-chip index after a quarterly review, reflecting the growing
clout of mainland companies in the city's equity market.
[ID:nHKG166319]
* Aluminum Corp of China Ltd (2600.HK) planned to team with
Malaysia Mining Company (MMCB.KL) and Saudi Arabian Binladin
Group to form a 40 percent-owned aluminium smelter joint venture
in Saudi Arabia. The project will worth an investment of up to
US$4.5 billion. [IDn:PEK239717]. For details please see
here
* Yue Yuen Industrial (Holdings) (0551.HK) said over the
weekend its net consolidated operating revenue for April amounted
to US$430.9 million while its net consolidated accumulative
operating revenue for four months ended in April was at US$1.6
billion. For details please see
here
* China Oriental Group Co Ltd (0581.HK) said ArcelorMittal is
still awaiting anti-trust clearance in respect of the
transactions contemplated in the Shareholders Agreement. For
details please see
here
* JP Morgan upgraded Foxconn International (2038.HK) to
neutral from underweight, saying its margin erosion is likely to
dim profit growth despite top-line growth to be driven from
Korean and Chinese handset OEMS.
KEY HK ADR MOVERS (by % change)
HSBC Holdings (HBC.N)(0005.HK) +3.1
China South Air (ZNH.N)(1055.HK) +1.3
China Telecom (CHA.N)(0728.HK) +0.7
China East Air (CEA.N)(0670.HK) +0.6
China Unicom (CHU.N)(0762.HK) +0.3
(Reporting by Judy Hua; editing by Ken Wills)
