HK shares expected to be skittish after US data

HONG KONG, Aug 6 (Reuters) - Hong Kong shares are expected to be volatile on Thursday after recent U.S. jobs data seemed to suggest the economic recovery was on less than firm ground, but a two-session pullback may encourage some investors to snap up shares.

Lenovo, the world's No.4 PC brand, will be in focus after it reported a smaller-than-expected first-quarter loss on Thursday, boosting hopes that the sector is experiencing a rebound.

It posted a net loss of $16.01 million in the April-June quarter, its third straight quarterly shortfall but better than market expectations for a $54 million loss.

U.S. shares lost ground on Wednesday after weak data on the services sector and private payrolls cooled recent optimism the recession was retreating, with the ADP private-sector jobs report showing private employers cut 371,000 jobs last month.

The benchmark Hang Seng Index dropped 1.5 percent on Wednesday with Chinese bank stocks leading losses as speculation swirled about the likely steps China may undertake to rein in liquidity on the mainland.

STOCKS TO WATCH-

* Wing On Travel said late on Wednesday that it expected to record a gain of HK$154 million from the sale of a 30-storey four-star hotel in Hong Kong for HK$833 million. It said it would lease back the property for its current hotel operations at HK$54 million a year for five years. Trading in the shares will resume on Thursday. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090805/LTN20090805827.pdf

* Yorkey Optical said its board had approved a proposed issue of Taiwan Depositary Receipts (TDR) by major shareholders and an application for the proposed TDR listing on the Taiwan Stock Exchange was expected to be filed with the relevant regulatory authorities in Taiwan by the end of August 2009. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090805/LTN20090805826.pdf ----------------------MARKET SNAPSHOT @ 2240 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 <.SPX> 1002.72 -0.29% -2.930 USD/JPY 94.91 0.01% 0.010 10-YR US TSY YLD 3.7618 -- 0.000 SPOT GOLD 963.05 0.11% 1.100 US CRUDE 71.53 -0.61% -0.440 DOW JONES <.DJI> 9280.97 -0.42% -39.22 ASIA ADRS <.BKAS> 121.23 -1.13% -1.39 ------------------------------------------------------------- Market Summary *Oil rises on U.S. distillate stock drop; optimism [nSP536030] *Wall St hurt by data, but financials curb losses [nN05278972] *Dollar dips as investors see data in best light [nN05270491] *Treasuries end lower as stocks come off lows [nN05588352] (Reporting by Parvathy Ullatil; Editing by Chris Lewis)