Hong Kong shares seen higher on U.S. gains
HONG KONG, Aug 7 (Reuters) - Hong Kong stocks are expected to rise on Thursday after U.S. markets built on recent big gains, but investor sentiment will be tempered by global credit concerns and a larger-than-expected loss at Cathay Pacific Airways (0293.HK).
Trading in Hong Kong's securities and derivatives markets was cancelled on Wednesday due to a severe tropical storm warning.
"We missed a chance for a major rebound yesterday. Today's gains will be limited by Freddie Mac's bigger-than-expected losses," said Francis Lun, general manager with Fulbright Securities.
Asian markets posted strong gains on Wednesday on retreating oil prices and U.S Federal Reserve's decision not to hike borrowing rates.
U.S. stocks rose on Wednesday building on the previous day's big gains, as a further drop in oil prices and a reassuring outlook from Cisco Systems (CSCO.O) overshadowed persistent credit concerns.
Freddie Mac (FRE.N), one of the major players in the U.S. mortgage market, on Wednesday posted its fourth straight quarterly loss as it braced for a prolonged housing market slump by setting aside twice as much money for bad loans and cutting its dividend by at least 80 percent.
Oil slipped to a three-month low on Wednesday as rising U.S. crude inventories heightened concerns of a demand slowdown in the world's top consumer.
Hong Kong shares slid 2.6 percent Tuesday, dragging the main index below the crucial 22,000 support level, as resources stocks crumbled and HSBC (0005.HK) slipped on less-than-stellar first half earnings.
STOCKS TO WATCH-
* Cathay Pacific Airways, Asia's No.3 carrier, surprised the market with a net loss for the first half on Wednesday as soaring fuel prices and a one-off fine more than offset firm passenger demand. [ID:nHKG315934]
* Industrial and Commercial Bank of China Ltd (1398.HK) said late on Wednesday that the United States Federal Reserve Board has approved its application to establish a New York branch, which will involve in wholesale deposit-taking, lending, trade finance and other banking services. For statement please see here 0806081.pdf * China Shipping Container Lines (2866.HK)(601866.SS) said late on Wednesday it would buy from its parent a 100 percent stake in terminals investor China Shipping Terminal Development Co Ltd for 2.6 billion yuan, a deal to be funded by proceeds from A-share listing and internal resouces. For details see here 0806085.pdf. * Hunan Nonferrous Metals Corp Ltd (2626.HK) said late on Tuesday it expected its unaudited net profit for the first half of 2008 to fall significantly from a year ago period amid substantial decrease in average selling price of zinc products. It posted an unaudited profit of 504.4 million yuan for the first half of 2007. For statement please see here 0805413.pdf -------------------MARKET SNAPSHOT @ 00:01 GMT ---------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1,289.19 0.34% 4.310
USD/JPY JPY= 109.46 -0.16% -0.160
10-YR US TSY YLD US10YT=RR 4.063 -- 0.005
SPOT GOLD XAU= $880.85 0.26% 2.250
US CRUDE CLc1 $118.97 0.33% 0.400
DOW JONES .DJI 11656.07 0.35% 40.30
ASIA ADRS .BKAS 142.56 0.83% 1.17 ------------------------------------------------------------- > SEA Stocks higher as oil slide eases inflation worries [.SO] > US STOCKS-Market rises on Cisco outlook, drop in oil
[.N] > Oil hits three-month low on U.S. crude bind
[O/R] > US dollar vaults to 7-month high vs yen, risk appetite up[USD/] > Bonds slip as stock market gains lure investors [US/] > Gold ticks up on bargain hunting after three-day fall [GOL/] (Reporting by Parvathy Ullatil; Editing by Kim Coghill)
