HONG KONG, Oct 14 (Reuters) - Hong Kong stocks are set to extend their recent gains on Thursday following stronger-than-expected earnings from U.S. companies that sent Wall Street shares to a five-month high.
Resources plays are expected to rise, tracking gains in the sector across the region on soaring commodity prices as China's month-on-month import growth hit a record high. [ID:nTOE69C01D]
On Wednesday, the benchmark Hang Seng Index <.HSI> hit a 28-month high, rising 1.5 percent to 23,457.69. The index, up more than 13 percent since the end of August, faces technical resistance around 23,730, where a large gap opened on the downside in June 2008.
Mainland banking shares, which have underperformed the broader market all year, are seeing renewed interest and are expected to rise as investors chase laggards and relatively low valuations tempt those seeking value.
New yuan loans in September surged to 596 billion yuan ($89 billion) as banks were freer with their lending with the global economy increasingly flush with liquidity.
Traders from Standard Chartered said in a note to clients, citing a statement on the Hong Kong stock exchange, that China's Central Huijin Investment Co had said it intended to continue increasing its shareholding in China Construction Bank Corp <0939.HK> <601939.SS> in the secondary market in the following 12 months.
CCB shares closed up 2.6 percent on Wednesday.
Elsewhere in Asia Japan's Nikkei <.N225> was up 1.9 percent, led by resource plays, while South Korea's KOSPI <.KS11> was up 0.8 percent as of 0120 GMT.
STOCKS TO WATCH:
- Asia-focused bank Standard Chartered Plc
- Japanese supermarket operator Uny Co Ltd <8270.T> said it would team up with a unit of Taiwan-based Tingyi (Cayman Islands) Holdings Corp <0322.HK> to open supermarkets in China, becoming the latest foreign operators to tap China's booming consumer market. [ID:nTOE69C06X]
- China HealthCare Holdings Ltd <0673.HK> said it would buy cemeteries and funeral parlors assets in Shanghai for HK$3.36 billion, in a deal to be settled by a combination of cash and issue of convertible note. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101014/LTN20101014007.pdf
- BYD Co Ltd <1211.HK> said the Shaanxi provincial office of the Ministry of Land and Resources had decided buildings, constructions and facilitates built by its subsidiary were unlawful use of land and would be forfeited and the company fined 2.95 million yuan. BYD said the decision would have no adverse impact on operations. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101013/LTN20101013605.pdf
- Geely Automobile Holdings Ltd <0175.HK>, a homegrown Chinese private car maker, said on Wednesday that its September vehicle sales rose 0.6 percent from the same month last year. [ID:nHKF002792]
- International Mining Machinery Holdings Ltd <1683.HK> said its controlling shareholder TJCC Holdings Ltd HAD sold 175 million shares, reducing its stake in the company to 41.14 percent. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101014/LTN20101014005.pdf
- A shareholder of Chinese coal mining machinery maker International Mining Machinery Holdings Ltd <1683.HK> is selling shares worth up to $156 million, according to a term sheet obtained by Reuters on Wednesday. [ID:nHKU000279]
- Solartech International Holdings Ltd <1166.HK> said it was in preliminary discussions with an independent third party regarding a possible acquisition of certain rare earth mines in Mongolia but no definitive agreement had been entered. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101013/LTN20101013499.pdf
- Huaneng Power International Inc <0902.HK> said its domestic power generation within China on consolidated basis totalled 190.903 billion kWh, an increase of 32 percent from the same period last year, while accumulated on-grid electricity sold amounted to 179.635 billion kWh. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20101013/LTN20101013325.pdf MARKET SUMMARY *Wall Street rises on earnings and weak dollar [nN13277682] *Treasuries rise as hedges unwind, Fed reinvests [nN13275623] *Dollar down on QE expectations; Aussie near parity [nN13104864] *Oil rises towards $83, China data lifts [nSGE69C08K] (Reporting by Vikram S Subhedar, Editing by Chris Lewis)