HK shares seen higher on banks, HSBC in focus

HONG KONG, Nov 26 (Reuters) - Hong Kong shares are set to rise on Wednesday, with the Federal Reserve's latest rescue package expected to provide further relief to the market and keep banks firmly in the spotlight. "Banks will lead the rally in Hong Kong today ... HSBC rose nearly 4 percent in New York last night," said Francis Lun, general manager with Fulbright Securities.

"The Fed's latest rescue plan is definitely a step in the right direction. After pumping so much money into the financial system, they are finally focusing on the housing sector and consumer spending," he said.

The Fed unveiled an $800 billion plan on Tuesday to buy mortgage-related debt and back consumer loans as it tries to revive the U.S. lending market. [ID:nLP703048]

HSBC's (HBC.N) American Depositary Receipts rose 3.6 percent to close at $52.46 on Tuesday.

The Hang Seng Index .HSI closed 3.4 percent higher on Tuesday at 12,878.60 after Wall Street gave a resounding thumbs up to the government's decision to rescue Citigroup, while resurgent oil prices helped energy stocks to notch up big gains.

STOCKS TO WATCH * Morgan Stanley initiated coverage of ports-to-telecoms conglomerate Hutchison Whampoa (0013.HK) with overweight, saying it was too cheap to ignore. [ID:nHKG103462]

* China Oilfield Services Ltd (2883.HK)(601808.SS) said on Wednesday it planned to issue a bond of up to 6 billion yuan ($879.5 million). [ID:nSHA84529]

* Chinese President Hu Jintao and Greek Prime Minister Costas Karamanlis witnessed the signing of a 3.4 billion euro ($4.4 billion) contract by state-controlled China Ocean Shipping Company (Cosco) (1919.HK) to operate the container port of Piraeus (OLP) (OLPr.AT) for 35 years, part of Greece's privatisation agenda. [ID:nLP90705]

* Sichuan Expressway (0107.HK) said on Tuesday it would seek fresh approval from shareholders regarding its issue of 500 million A-shares, valued at up to 2 billion yuan, in the mainland. For statement please see here

* Natural Beauty Bio-Technology (0157.HK) said on Tuesday Global Radiance Co Ltd had offered to take the company private at HK$1.20 per share in an effort to allow shareholders to realise their holdings in an illiquid stock in return for cash. Trading in the shares will resume on Wednesday. For statement please see here ---------------MARKET SNAPSHOT @ 00:05 GMT----------------------

INSTRUMENT LAST PCT CHG NET CHG

S&P 500 .SPX 857.39 0.66% 5.580

USD/JPY JPY= 95.47 0.24% 0.230

10-YR US TSY YLD US10YT=RR 3.115 -- 0.002

SPOT GOLD XAU= $815.00 -0.59% -4.850

US CRUDE CLc1 $51.09 0.63% 0.330