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Hong Kong stocks close up 0.32 pct; Foxconn, Sands China dive

Published 03/31/2011, 04:20 AM
Updated 03/31/2011, 04:24 AM
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HONG KONG, March 31 (Reuters) - Hong Kong shares ended higher for a second consecutive session on Thursday, supported by property and financial counters as investors looked to finish dressing up their portfolios on the last day of the quarter.

The benchmark Hang Seng Index finished up 0.32 percent at 23,527.52, and up 2.3 percent on the quarter. China's main stock index, the Shanghai Composite Index closed down 0.94 percent on the day to 2,928.11, but was up 4.3 percent for the quarter.

Both outperformed the Nikkei , which fell 5 percent for the quarter and Taipei's TAIEX , down 3.22 percent. Seoul's KOSPI finished was up 2.7 percent on the quarter.

HIGHLIGHTS:

* Property counters in Hong Kong continued their recent bullish trend on Thursday, with China Resources Land Ltd and Henderson Land Development Co Ltd leading the way. Mutual funds polled by Reuters recommended a higher exposure to Chinese property stocks. [ID:nTOE72L00Q]

* Analysts are bullish on financial, property and energy counters, particularly Chinese ones, in the second quarter. They expect the Hang Seng Index to be rangebound until they see a clear macroeconomic trend emerging, with some pointing to 24,400 -- the highest point reached in January this year -- as upside resistance.

* Sands China Ltd dropped 5.7 percent after the Macau unit of billionaire Sheldon Adelson's Las Vegas Sands Corp said it was being investigated by the Hong Kong Securities and Futures Commission for alleged regulatory breaches. The announcement comes nearly a month after U.S. anti-corruption agencies launched an investigation into its parent Las Vegas Sands Corp . [ID:nL3E7EV08W]

* Foxconn International Holdings Ltd tumbled 4.5 percent. It hit a 23-month low in early trade after announcing a bigger-than-expected 2010 net loss.

DAY AHEAD:

* U.S. employment data on Friday is expected to confirm the improving view of global economic recovery.

* Japan remains unresolved and any major developments could be the wild card that moves markets, analysts said.

(Reporting by Clement Tan; Editing by Chris Lewis)

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