HONG KONG, Oct 6 (Reuters) - Hong Kong stocks are set to rise on Wednesday in defiance of technically overbought conditions, following a sharp rally on Wall Street on the back of a growing conviction that central banks will take more measures to bolster global recovery.
The Bank of Japan unexpectedly cut its policy rate closer to zero and said it would purchase assets, stoking speculation that other central banks, including the U.S. Federal Reserve, will resort to similar measures to stimulate their economies.
Major U.S. indexes <.SPX> rose 2 percent, also helped by data showing the pace of growth in the country's services sector accelerated quicker than forecast in September. [.N]
Stocks in Hong Kong edged up to a ten-month high on Tuesday, largely due to a jump by China Life Insurance Co Ltd <2628.HK>.
The benchmark Hang Seng Index <.HSI> closed up 0.1 percent at 22,639.14 after trading in the red for most of the session.
Traders said investors would likely chase large cap stocks that have lagged the broader market this year, which could push the benchmark index to a 2010 high.
A 10.2 percent rally since the end of August has taken the Hang Seng Index well into technically overbought territory according to its relative strength index, currently at 75, although renewed interest in equities and a sharp recovery in turnover could see the index push higher.
Elsewhere in Asia, Japan's Nikkei <.N225> gained 1.3 percent while South Korea's KOSPI <.KS11> was up 1.1 percent.
STOCKS TO WATCH:
- AIA Group Ltd, which aims to raise about $15 billion in a Hong Kong listing, had formed a new board of directors ahead of the initial public offering, AIA said in a statement. U.S. billionaire investor Warren Buffett may invest $1.5 billion in AIA's Hong Kong IPO, Hong Kong's Economic Times reported on Wednesday.
- Heavy truck maker Sinotruk (Hong Kong) Ltd <3808.HK> is likely to be the third company to issue yuan bonds in Hong Kong as it seeks to raise up to 2 billion yuan ($298.9 million) as early as this month, local media reported.
- Digital China Holdings Ltd <0861.HK>, a computer parts supplier spun off from dominant Chinese PC maker Lenovo Group Ltd <0992.HK>, said it had applied to list Taiwan Depositary Receipts (TDRs) in Taiwan, taking advantage of warming ties across the Taiwan Strait.
- UC Rusal Ltd <0486.HK>, the world's largest aluminium maker, has cut the minimum lot size for its shares by three quarters to 6,000 shares from 24,000 shares to make the stock more accessible to retail investors and boost liquidity.
- The family trust of Sun Hung Kai Properties Ltd <0016.HK> has been reorganised. Walter Kwok, eldest son of SHK founder Kwok Tak-seng, will hold one-third of the shareholding interest in the trust, which holds 1.08 billion shares or about 42 percent of SHK's total shares.
- Securities firm China Everbright Ltd <0165.HK> has sold 129 million shares, worth up to $311 million, at HK$18.00 to HK$18.70 each, a discount of 3.5 to 7.1 percent to the closing price on Tuesday at HK$19.38.
- Shareholders of Chinese property firm Zhongsheng Group Holdings Ltd <0881.HK> are selling 100 million shares, worth up to $214 million, at HK$16.16 to HK$16.58 each, a discount of 3.7 percent to 6.2 percent to the closing price on Tuesday at HK$17.22. MARKET SUMMARY *Wall Street soars to near 5-month high [nN05216694] *Treasuries gain narrowly;traders expect Fed buys[nN05589121] *Dollar weakens as BoJ boosts risk appetite [nN05579774] *Oil hits 5-month peak on dollar, French strike [nSGE69405N] (Reporting by Vikram S Subhedar, Editing by Chris Lewis)