HONG KONG, June 12 (Reuters) - Hong Kong shares are seen higher on Friday, boosted by encouraging U.S. economic data, but gains may be capped as worries about a widespread flu pandemic returned.
The World Health Organisation declared an influenza pandemic on Thursday and advised governments to prepare for a long-term battle against an unstoppable new flu virus.
Flu fears may take a toll on airline and hospitality stocks, while boosting drugmakers.
News that U.S. retail sales rose in May for the first time in three months and the number of workers filing new claims for jobless benefits last week hit a January low are seen supporting gains.
Resources-linked stocks may be boosted after crude futures marked a fresh seven-month high above $73 per barrel a day earlier on hopes for a recovery in the global economy and forecasts of growth in oil demand. Oil fell towards $72 per barrel on Friday as investors sought to lock in profit.
The benchmark Hang Seng Index shuffled sideways on Thursday to close at 18,791.03 as local property stocks were beaten down on worries about rising interest rates.
STOCKS TO WATCH-
* Oil and gas producer CNPC (Hong Kong) on Friday said it would set up a 75 percent-owned joint venture, Xing Jing Bridge Energy Ltd, with China Xinjiang Recycle Energy Company Ltd and China Hainan Hiran Hi-tech Energy Co., Ltd in China for a total investment of 668 million yuan ($97.74 million).
The joint venture will engage in the collection of associated gas generated from oilfields, which will then be utilised for the production of compressed natural gas, liquefied natural gas and hydrocarbon for sale in China.
For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090612/LTN20090612020.pdf
* Hung Hing Printing late on Thursday said its results for the year ended March 2009 would be hit by losses in its paper manufacturing business amid reduced demand for packaging products, keen competition and volatility of commodity waste-paper prices. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090611/LTN20090611420.pdf
* Pou Sheng International, a sportswear retailing arm of Yue Yuen Industrial, warned of a substantial reduction in profit for the six months ended in March 2009 on a decrease in profit margins on higher discount offers and an increase in selling and distribution expenses. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090611/LTN20090611387.pdf
* Mingyuan Medicare Development on Thursday said it would team up with Chinese National Human Genome Center in Shanghai and Shanghai Biochip Co., Ltd. to develop and produce diagnostic kits for detecting Influenza A viruses including H1N1.
The Chinese partners successfully developed two advanced kits for detecting the viruses, while the Hong Kong company would register the kits with the Chinese authorities.
For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090611/LTN20090611312.pdf ----------------------MARKET SNAPSHOT @ 2246 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 944.89 0.61% 5.740
USD/JPY
MARKET SUMMARY *World stocks rally on recovery hopes, oil soars [ID:nN11369619] *Oil climbs over $73 on hopes for rising demand [ID:nSIN191080] *Dollar falls broadly as risk appetite increases [ID:nN11512032] *Solid long bond Treasury fuels rally [ID:nN11219495]
(Reporting by Parvathy Ullatil; Editing by Chris Lewis)