HONG KONG, June 8 (Reuters) - Hong Kong shares are expected to rise on Monday after U.S. employment data showed fewer jobs were lost last month, allowing investors to continue betting on an economic recovery.
A government report said U.S. employers cut 345,000 jobs last month, the fewest since September and far less than forecast, suggesting the economy's severe weakness was diminishing.
But other data showed the U.S. unemployment rate hit 9.4 percent, its highest since 1983.
Shares in China Eastern Airlines were suspended from trading on Monday morning.
China Eastern and and Shanghai Airlines have started discussions on a merger between the two, the South China Morning Post reported on Monday, citing Shanghai Airlines vice-president Feng Xin.
The merger is expected to give China Eastern a 50 percent market share in Shanghai.
The benchmark Hang Seng Index rose 1 percent TO 18,679.53 on Friday, with energy stocks leading gains as crude oil hit a seven-month high.
STOCKS TO WATCH-
* China Shenhua Energy said its shareholders had granted directors a mandate to buy back up to 10 percent of its A shares and H shares. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090605/LTN20090605575.pdf
* Garment trader and broadcasting equipment provider Rontex International said it planned to issue up to US$100 million convertible bonds to third-party investors in two tranches, raising capital for development of a coal mine in Russia. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090605/LTN20090605655.pdf
* SOHO China said it would set up an operation and management joint venture with third party Winbase Development Inc to purchase and operate an office and retail property in Tianjin with a total investment of 1.27 billion yuan ($185.9 million). For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090605/LTN20090605637.pdf ----------------------MARKET SNAPSHOT @ 2240 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 940.09 -0.25% -2.370
USD/JPY
MARKET SUMMARY *Oil, global stocks gain on strong U.S. jobs data [ID:nN05282128] *Oil falls after touching 7-month high over $70 [ID:nSIN265486] *Dollar posts sharp gains after U.S. jobs report [ID:nN05495607] *Treasuries fall on less-than-forecast job losses [ID:nN05421126]
(Reporting by Parvathy Ullatil; Editing by Chris Lewis)