HONG KONG, June 9 (Reuters) - Hong Kong shares are expected to move higher on Tuesday, recovering from the previous session's losses, boosted by a rally on Wall Street and a rebound in crude oil prices.
Crude oil futures rose towards $69 per barrel on Tuesday, erasing Monday's 0.5 percent decline, amid expectations U.S. inventory data due out later in the day will show a decline in U.S. crude stockpiles.
China Huiyuan Juice will be in focus after the Financial Times newspaper reported that U.S. private equity fund Warburg Pincus had ended its investment in China's top juice producer, becoming the first big stakeholder to pull out of the company after the collapse of Coca-Cola's $2.4 billion takeover offer.
Coca-Cola Co's planned purchase of China Huiyuan Juice was blocked by the Chinese government in March, triggering a sharp fall in the company's share price.
The benchmark Hang Seng Index dropped 2.3 percent on Monday, to close at the lowest level this month, as financials and local property stocks lost ground after their recent sharp run-up.
STOCKS TO WATCH-
* China Power International said it would buy a 63 percent stake in Wu Ling Power, the largest independent hydropower producer in Hunan province, from its parent for 4.47 billion yuan ($653.8 million), a deal to be settled by the issuance of 3.13 billion yuan worth of shares with the remainder to be paid in cash. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090608/LTN20090608528.pdf
* Shandong Chenming Paper said it planned to invest 5.2 billion yuan in a low-weight coated-paper project in Shougang City, 2.6 billion yuan in a white-coated linerboard project, and 2 billion yuan to build a special railway line connecting its headquarters to a logistics centre. The projects will be partly funded by bank loans. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090608/LTN20090608464.pdf
* China Eastern Airlines late on Monday said it was currently in the middle of restructuring plans, and was planning proposals for lowering the company's gearing ratio. It did not disclose further details.
Trading in the shares will remain suspended pending a statement on price-sensitive information. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090608/LTN20090608416.pdf
* Electronic component trader Inspur International said it had completed its sale of 310 million shares to a controlling shareholder at HK$1.40 each after the shareholder sold the same amount of existing shares at the same price to third-party investors. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090608/LTN20090608349.pdf
* China Resources Power plans to invest up to 3 billion yuan per annum over the next few years to boost its wind-power generating capacity, the South China Morning Post reported. The power producer will build up to six wind farms with a total generating capacity of 300 megawatts per year, the newspaper cited chief financial officer Wang Xiaobin as saying. ----------------------MARKET SNAPSHOT @ 2245 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 939.14 -0.1% -0.950
USD/JPY
MARKET SUMMARY * Wall Street rallies late, ends flat [ID:nN08345810] * Oil slips, stocks and dollar weigh [ID:nSP162458] * Dollar gains, bonds fall on U.S. rate-hike fears [ID:nN08341159] * Rate fears beat back U.S. Treasury bonds [ID:nN08382300]
(Reporting by Parvathy Ullatil; Editing by Chris Lewis)