HONG KONG, June 19 (Reuters) - Hong Kong shares may follow Wall Street's lead and trade higher on Friday after the latest U.S. data raised hopes of an economic turnaround.
The reading on the Philadelphia Federal Reserve business activity index was the highest since September 2008, while the Conference Board's forward-looking measure of the U.S. economy posted its biggest increase in five years in May.
U.S. jobless claims also showed signs of improvement, while oil prices gained in the international markets after disruptions from Organisation of the Petroleum Exporting Countries member Nigeria stirred supply concerns.
"Wall Street did better last night and also, having had a sell-off in the past few days, our market could bounce today," said Howard Gorges, director at South China Brokerage.
But he added that sentiment would remain cautious, with some profit-taking across the board.
"People are still cautious, although some fund managers may do some window-dressing, which could help support the market," he said. On Thursday, the benchmark Hang Seng Index fell 307.94 points or 1.7 percent to close at 17,776.66.
STOCKS TO WATCH:
*Ping An Insurance would fund its planned purchase of a stake in Shenzhen Development Bank from internal resources and had no near-term fund-raising plans, the official China Securities Journal reported on Friday, quoting Ping An's president.
* PetroChina Co Ltd, Asia's largest oil and gas producer, on Thursday said it would purchase two pipelines in western China from its state-owned parent for about HK$11 billion ($1.4 billion).
* Jewellery trader Continental Holdings said it would sell a retail property in Hong Kong to a third party property investor for HK$838 million and the proceeds would be used to reduce borrowings and for future investment. For statement click http://www.hkexnews.hk/listedco/listconews/ sehk/20090618/LTN20090618503.pdf * Tobacco flavours producer Huabao International on Thursday posted a 29.3 percent rise in profit for the year ended March to HK$1.11 billion, due mainly to the consolidation of the tobacco industry, and as China's top ten cigarette corporations have all become customers of the company. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090618/LTN20090618379.pdf * Sun Hung Kai Properties said Michael Wong would retire as executive director of the company with effect from January 2010 and that Patrick Chan had been appointed as executive director and chief financial officer with effect from July 8, 2009. For statement click http://www.hkexnews.hk/listedco/ listconews/sehk/20090618/LTN20090618319.pdf
* Sinotruk on Thursday said it expected a substantial drop in net profit for the six months to June because of reduced demand for heavy duty trucks amid the financial crisis. For statement click http://www.hkexnews.hk/listedco/listconews/ sehk/20090618/LTN20090618298.pdf
* China Insurance International on Friday said it would offer one new China Insurance share for every 10 Ming An shares held in a bid to take Ming An private, and would not increase the offer. For statement click http://www.hkexnews. hk/listedco/listconews/sehk/20090619/LTN20090619035.pdf ----------------MARKET SNAPSHOT @ 2243 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 918.37 0.84% 7.660
USD/JPY
MARKETS SUMMARY *Oil rises on economic hopes, Nigeria disruptions [nSIN282931] *Dow, S&P end 3-day drop on data, financials [nN18415261] *Dollar falls on positive US data, Swiss franc falls [nN18382847] *TREASURIES-Bonds fall on less dire data, supply [nN18397272] (Reporting by Nerilyn Tenorio; Editing by Chris Lewis)