HONG KONG, April 3 (Reuters) - Hong Kong stocks are expected
to fall on Thursday, a day after hitting a one-month high,
tracking a drop in U.S. stocks after Federal Reserve Chairman Ben
Bernanke said a recession was possible.
Volatile markets in China, where the benchmark index .SSEC
has dropped 7 percent since the end of March, were also expected
to weigh.
"We'll fall between 200 and 300 points," said Francis Lun,
general manager of Fulbright Securities.
"But most of the attention will be on the A-share market in
China which will impact H shares, and the banks will stay in
focus."
Hong Kong stocks hit a one-month closing high on Wednesday
after strong demand for a Lehman Brothers LEH.N share offering
raised hopes that the worst of the credit crisis may have ended.
The benchmark Hang Seng Index .HSI ended 3.18 percent
higher at 23,872.43 points, buoyed by property and
financial plays.
The China Enterprises Index of Hong Kong-listed mainland
companies .HSCE, or H shares, closed up 4.66 percent at
12,807.35.
STOCKS TO WATCH:
* Sports shoe maker Yue Yuen Industrial (Holdings) (0551.HK)
posted an unaudited consolidated profit of US$99.8 million for
the three-month quarter ended in December 2007, up nearly 8
percent compared with US$92.4 million in the same period a year
earlier. For details please see
here
* Belgian-Dutch financial group Fortis (FOR.BR) (FOR.AS) and
China's Ping an Insurance Co Ltd (2318.HK) have finalised a deal
to set up a global asset management partnership. [ID:NL02547837]
* Hopson Development (0754.HK) said it would pay 493.2
million yuan ($70.28 million) for costs reimbursement in relation
to the transfer of land use rights for a commercial, office and
residential development area in Beijing. The company won a bid
for the land use right in February for 1.74 billion yuan. For
details please see
here
* China National Resources Development Holdings Ltd (0661.HK)
said it had agreed to buy a 51 percent stake in mining
engineering design firm Beijing Oriental Yanjing Mining
Engineering Co Ltd at a price yet to be disclosed. For details
please see
here
* Datang International Power Generation Co Ltd (0991.HK) said
it would sell 35 percent of Lusigang Power Co in Jiangsu province
to parent China Datang Corp for 108.45 million yuan ($15.45
million), reducing its stake in the unit to 55 percent. For
details please see
here
* Cruise operator Star Cruises (0678.HK) said it plans to
team up with Alliance Global Group Inc (AGI.PS) to develop hotels
and casinos in the Philippines, spending at least $1 billion on a
set of projects the company hopes will expand its reach into a
relatively untapped Asian gaming arena.[ID:nHKG88722]
FACTORS TO WATCH:
* Nikkei .N225 opens flat after rally [.T]
* U.S. stocks- Bernanke's recession nod sparks profit-taking [.N]
* STOCKS NEWS ASIA-Market factors, main events [STXNEWS/ASIA]
* Oil surges nearly $4 on U.S. fuel inventory draw [O/R]
* Dollar pressured as Bernanke dampens optimism [USD/]
* For upcoming Hong Kong events, click on [HK/DIARY]
* For Hong Kong press digest, click on [PRESS/HK]
KEY HK ADR MOVERS (by % change)
Sinopec (SNP.N)(0386.HK) +0.38
TomoTherapy (TOMO.O) -0.47
Huaneng Power (HNP.N)(0902.HK) -0.57
PetroChina (PTR.N)(0857.HK) -0.67
HSBC Holdings (HBC.N)(0005.HK) -0.82
(US$1=HK$7.8)
(Reporting by Joseph Chaney; rita.chang@reuters.com; Reuters
Messaging: rita.chang.reuters.com@reuters.net; +852-2843-6370))
ASIA-PACIFIC STOCK MARKETS:
Pan-Asia........[STXNEWS/AS] Japan.......[.T] S.Korea...[.KS]
S.E. Asia.......[.SO] Hong Kong...[.HK] Taiwan....[.TW]
Australia/NZ....[.AX] India.......[.BO] China.....[.SS]
OTHER MARKETS:
Wall Street ....[.N] Gold .......[GOL/] Currency..[FRX/]
Eurostocks......[.EU] Oil ........[O/R] JP bonds...[JP/]
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U.S. earnings diary [RESF/US] European diary [WEU/EQTY]
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Eurostocks Week Ahead [.EU/O]
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