HONG KONG, Oct 7 (Reuters) - Hong Kong stocks are set to open on a cautious note after hitting a fresh 2010 high on heavy volume on Wednesday.
On Wednesday, Hong Kong's benchmark Hang Seng Index <.HSI> rose 1.1 percent to its highest level in more than 11 months as investors bought up underperformers such as banks in expectation of easing U.S. monetary policy.
Speculation of more easing around the world has grown since the Bank of Japan cut interest rates close to zero on Tuesday and said it would pump cash into Japan's financial system through asset purchases.
Traders at Standard Chartered said in a note that clients should expect a mixed market on the day with potential gains in materials.
Metals and mining shares will be in focus ahead of the start
of the U.S. third-quarter earnings season, which kicks off later
on Thursday with bellwether Alcoa Inc
"The Hang Seng Index should extend its rally, but only slightly as the index already rose substantially on capital inflows yesterday and the mixed results on Wall Street overnight haven't sent us any sign," said Francis Lun, general manager at Fulbright Securities.
The technology sector dragged U.S. stocks lower after Morgan Stanley downgraded some semiconductor companies on concern about a slowdown in Asian markets and profit-taking in sectors such as cloud computing, which have posted strong gains recently.
Elsewhere in Asia, Japan's Nikkei <.N225> was down 0.1 percent with market players closely watching moves in the yen, which jumped to a new 15-year high against the dollar the previous day.
South Korea's KOSPI <.KS11> fell 0.3 percent, hit by a fall in shares of Samsung Electronics Co Ltd <005930.KS> after the company issued a weaker-than-expected third-quarter earnings forecast.
STOCKS TO WATCH:
- Net profit at real estate developer New World Development Co Ltd <0017.HK> jumped more than 450 percent to HK$11.6 billion in the financial year ended June, and the company has recommended a final dividend of HK$0.28 per share. For statement, click: http://www.hkexnews.hk/listedco/listconews/sehk/20101006/LTN20101006290.pdf
- Losses at network solutions provider Vision Values Holdings Ltd <0862.HK> more than tripled to HK$17.6 million in its financial year ended June. The company gave a cautious outlook for the sector. For statement, click: http://www.hkexnews.hk/listedco/listconews/sehk/20101006/LTN20101006907.pdf
- Golden Meditech Holdings Ltd <0801.HK> has applied to the Taiwan Stock Exchange to issue Taiwan Depositary Receipts, representing up to 120 million new shares and up to 60 million existing shares. For statement, click: http://www.hkexnews.hk/listedco/listconews/sehk/20101006/LTN20101006819.pdf
- Electrical distribution systems maker Boer Power <1685.HK> is aiming to raise up to HK$1.2 billion in an initial share offering to help it grow its business in China. For statement, click: http://www.hkexnews.hk/listedco/listconews/sehk/20101007/LTN20101007009.pdf
- Net profit at media company Sandmartin International Holdings Ltd <0482.HK> rose by almost three times to HK$91.7 million, and said it would be looking at the China market to grow its business. For statement, click: http://www.hkexnews.hk/listedco/listconews/sehk/20101006/LTN20101006660.pdf MARKET SUMMARY *US Nasdaq drops,S&P dips on worries abt tech [nN06288663] *Treasuries jump as trdrs bank on Fed buying [nN06566862] *Dollar drops to 15yr low vs yen [nN06517377] *Oil ends up, above $83 on EIA data, dollar [nSGE6950A2] (Reporting by Vikram S Subhedar; Editing by Chris Lewis)