Connect to share and comment

Hong Kong shares may start higher following Dow's record close

PlacardEnlarge
(Globalpost/GlobalPost)

HONG KONG, March 6 (Reuters) - Hong Kong shares could start higher on Wednesday following Wall Street's record close on signs of a strengthening U.S. economy and continued support from the Federal Reserve with easy monetary policy.

The Dow Jones industrial average on Tuesday broke through levels last seen in 2007 and as investors bet on continuing U.S. recovery, buoyed by positive data for the services sector and China's announcement of additional spending in 2013.

Power Assets, SOHO China and Hysan Development are among companies due to post corporate earnings later in the day.

On Tuesday, the Hang Seng Index inched up 0.1 percent to 22,560.5, while the China Enterprises Index of the top Chinese listings in Hong Kong climbed 0.6 percent.

Elsewhere in Asia, Japan's Nikkei was up 1.2 percent, while South Korea's KOSPI was up 0.6 percent at 0040 GMT.

FACTORS TO WATCH:

* China's money supply growth target of 13 percent in 2013 signals that policymakers do not want credit growth to be too fast, People's Bank of China Governor Zhou Xiaochuan said on Tuesday.

* CNOOC Ltd CEO says it will probably take 5-10 years to see a big step change in shale plays in China.

* Standard Chartered notched up a tenth successive rise in annual profit, with a 1 percent gain that was capped by the bank's big fine for breaking U.S. sanctions on Iran and rising regulatory costs.

* Jiangxi Copper Company Ltd, China's top producer of refined copper, sees the global copper market largely in balance this year, with average prices at around $8,100 per tonne, company chairman Li Baomin said on Tuesday.

* HSBC Holdings Plc has agreed to sell two portfolios of consumer loans in the United States for $3.2 billion in cash as part of a strategy to slim down its U.S. operations.

* A rise in profits from trading helped Glencore offset lower prices in 2012, with net income down by a quarter as the commodities group prepares to seal a $34 billion takeover of miner Xstrata.

* Household product supplier Lisi Group (Holdings) Ltd said it would buy department stores and supermarkets operator in China's Ningbo City from its chairman Li Li Xin for HK$892 million in new shares and convertible bonds.

* Furniture maker Kasen International Holdings Ltd said it would experience a substantial decline in its net profit for 2012 due to decrease in a one-off disposal gain and losses from the relocation of a factory.

* Tech Pro Technology Development Ltd said it expected to record a substantial loss for 2012 due to substantial losses recorded in its electrolytic aluminum capacitor segment.

* Birmingham International Holdings Ltd said it expected to post an improvement in its profit for year ended in June 2012 due to decreased impairment losses on intangible assets, its efforts to reduce player expenses and generate revenue on player disposals.(Reporting by Clement Tan; Editing by Stephen Coates)

http://www.globalpost.com/dispatch/news/thomson-reuters/130305/hong-kong-shares-may-start-higher-following-dows-record-close