REFILE-HK shares to rebound on Fed comments, oil pullback
(Refiles to fix spelling of oil in headline)
HONG KONG, July 9 (Reuters) - Hong Kong shares are expected to rebound on Wednesday, after falling to a three-month low in the previous session, on a $10 per barrel drop in oil prices so far this week and increased confidence in the credit market.
On Tuesday, Federal Reserve chairman Ben Bernanke said the U.S. central bank might extend emergency lending facilities for big Wall Street banks past year-end.
Crude oil price slipped below $136 per barrel in Asian trade on Wednesday after tumbling more than $5 overnight on the waning threat of an Atlantic hurricane and a strenghthening U.S dollar. [ID:nSIN217663]
"Oil prices have retreated and confidence in the credit markets has been restored to some extent. We should see the Hong Kong market moving up at least 500 points, led by banking stocks," said Francis Lun, general manager with Fulbright Securities.
U.S. stocks rose in another turbulent session on Tuesday as a pullback in oil prices eased worries about consumer and business spending, while financial shares gained after the Fed chairman said he may keep open a lifeline for banks.
Stronger-than-expected earnings from Alcoa Inc (AA.N) also helped shore up gains. The Dow DJI> rose 1.36 percent while the S&P 500 Index .SPX gained 1.71 percent. [ID:nN08471024]
Hong Kong shares slid 3.2 percent on Tuesday to a 15-week low, with all stocks in the main index in the red, as jittery investors dumped blue chips on fears of more losses at U.S. financials and amid a lack of market-boosting steps from China.
STOCKS TO WATCH-
* China Telecom (0728.HK), the largest fixed-line service provider in the country, announced the appointment of Shang Bing as the firm's new President and Chief Operating Officer. Shang, formerly president of China Unicom (0762.HK), replaces Leng Rongquan, who has resigned, effective July 8.
* Mongolia Energy Corporation (0276.HK) has awarded two road contracts to Chinese contractors worth approximately 866 million yuan ($126.3 million) on a 340 km stretch of road between MEC's mine areas in western Mongolia, and the border crossing with Xinjiang, China. For more details, see here
* Coal stocks are expected to rally after Chinese media said Beijing had put a tax reform proposal, that may result in a higher levy, on hold for at least three months amid worries of rising inflation.
* Casino operators may find some reprieve from the Macau government's decision to cap commissions paid by casino operators to VIP junket operators as early as next month, according to a report in the South China Morning Post. Shares in casino operators have been mauled in recent weeks on concern over increased costs of operations and policy irregularities in Macau.
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INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1,273.70 1.71% 21.390 USD/JPY JPY= 107.47 0.03% 0.030 10-YR US TSY YLD US10YT=RR 3.900 -- 0.011 SPOT GOLD XAU= $916.40 -0.34% -3.100 US CRUDE CLc1 $136.00 -0.03% -0.040 DOW JONES .DJI 11384.21 1.36% 152.25 ASIA ADRS .BKAS 145.88 0.02% 0.03 ---------------------------------------------------------------> > SE Asian Stocks-S'pore leads losses on global credit fears[.SO] > Bernanke comments, oil price slide boost dollar [USD/] > Long bonds gain as oil drop eases inflation fears [US/] > Gold ends with slight loss despite oil slump [GOL/] > Oil slumps on easing storm worry, dollar [O/R] > Market rises on banks, lower oil; Alcoa up late [.N] (Reporting by Parvathy Ullatil; Editing by Anne Marie Roantree)
