HONG KONG, Sept 1 (Reuters) - Hong Kong stocks are set to open flat to slightly higher amid investor caution, with the key index hovering near a support level and as an economic slowdown tests corporate profits in the second half of the year.
Wall Street closed out a dismal August on a flat note on Tuesday with the S&P 500 down nearly 5 percent for the month, pressured by growing evidence economic recovery is sputtering.
Hong Kong stocks fell 1 percent on Tuesday with the Hang Seng Index closing slightly below a support level that had limited losses in recent sessions.
Stocks are likely to receive a boost from a report that China's official purchasing managers' index rose to 51.7 in August from 51.2 in July as the focus shifts to China's moderating economy.
In the region, Japan's Nikkei rose 0.5 percent while South Korea's KOSPI was up a percent.
STOCKS TO WATCH:
- Air China Ltd said it had agreed to buy 15 Boeing 787-9 aircraft from Boeing Co for a basic price of $3.19 billion to expand fleet capacity.
- Institutional demand for Industrial and Commercial Bank of China Ltd's 25 billion yuan ($3.67 billion) convertible bond sale exceeded 2 trillion yuan, the China Securities Journal reported on Wednesday, without citing sources.
- China Mobile Ltd will hold a 20 percent stake in Shanghai Pudong Development Bank Co Ltd for five years, longer than previously announced, because of Chinese regulations, the country's largest mobile carrier said.
- Taiwan's top financial regulator said on Tuesday that it hoped American International group Inc would continue to run its Taiwan unit Nan Shan Life, after rejecting its $2.2 billion sale to China Strategic Holdings Ltd and Hong Kong financial firm Primus Financial.
- China's Yuanba gas field, being developed by China Petroleum & Chemical Corp (Sinopec) may be similar in size to the neighbouring Puguang field, China's second-biggest, a Sinopec executive said on Tuesday.
- Hong Kong sold a piece of land on Tuesday at a price that was a third above forecasts, indicating that the Chinese territory's property sector could still be frothy even after cooling measures were announced weeks ago. Kerry Properties Ltd won the bid.
- Sinopharm Group Co Ltd said it would set up a joint venture Sinopharm Excelsior in Shanghai with a total investment of 1 billion yuan. The venture will be involved in the acquisition of medical institutions, management of hospitals, and medical advisory service. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20100901/LTN20100901011.pdf
- Yuexiu Property Co Ltd said it would buy two lots of land in Panyu, Guangzhou province for about 2.9 billion yuan to increase its land bank. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20100831/LTN20100831802.pdf
- Sri Lanka has signed a $450 million deal with China Merchants Holdings (International) Co Ltd and local conglomerate Aitken Spence Plc to boost the Colombo port's cargo-handling capacity, a official said on Tuesday.
- Swedish carmaker Volvo Cars, owned by Chinese group Geely Automobile Holdings Ltd, wants a bigger European Investment Bank loan than previously planned -- 600 million euros ($758 million) rather than 500 million.
- China Pacific Insurance is planning to invest 5 billion yuan ($735.3 million) in Shanghai Rural Commercial Bank's (SRCB) private placement of shares, the Shanghai Securities News reported on Wednesday. (Reporting by Vikram S Subhedar, Editing by Chris Lewis)