HONG KONG, Oct 11 (Reuters) - Hong Kong stocks are expected to open flat on Monday, with investors seen holding back after the main index ended at an 11-month high in the previous session, but the downside is likely to be limited as the U.S. dollar remains weak.
"Although investors may hold back following recent gains, the weak U.S. dollar is set to allow the market to remain firm," said Patrick Yiu, a director at CASH Asset Management.
Yiu said new energy, pharmaceutical and retail issues were likely to remain in focus, and the index may see an upside at 23,100.
On Friday, spurred by strong mainland markets, Hong Kong's benchmark Hang Seng Index <.HSI> closed up 0.26 percent at 22,944.18, an 11-month high, but fell short of breaching its November 2009 peak.
Elsewhere in Asia, Japan's Nikkei <.N225> was down 0.99 percent while South Korea's KOSPI <.KS11> was up 0.33 percent.
CNOOC Ltd <0083.HK> is in focus after the company agreed to
buy a third of Chesapeake Energy Corp's
STOCKS TO WATCH:
- American International Group (AIG) has received strong demand for the IPO of its Asian life insurance unit AIA Group, with the offer covered more than five times in the first week. [ID:nTOE69801B]
- Property developer Greentown China Holdings Ltd <3900.HK> said it had acquired a Shandong project for 1.24 billion yuan ($179.9 million) and will sell 51 percent of the project to Qingdao Haier. Greentown agreed to pay 1.16 billion yuan, or 94 percent of the consideration via loans provide by Qingdao Haier that carry an annual interest rate of 10 percent. For a statement, click http://www.hkexnews.hk/listedco/listconews/sehk/20101010/LTN20101010037.pdf
- Quality Health Care Asia Ltd <0593.HK> said New Delhi-based Fortis Global Healthcare Holdings had agreed to buy its healthcare business for HK$1.52 billion ($195 million). After the deal, QHA will continue to operate and develop its elderly healthcare business in Hong Kong and to acquire or develop healthcare operations and elderly healthcare business in mainland China. For a statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20101010/LTN20101010025.pdf
MARKET SUMMARY *Dow ends above 11,000 on Fed hopes, farm forecast [nN08282350] *U.S. payrolls data preserve easing expectations [nN08585022] *Dollar lurches to 15-year low on yen; euro gains [nSGE69903Y] *Crude jumps above $83 as dollar tumbles [nSGE69904K] (Reporting by Donny Kwok; Editing by Chris Lewis)