HK shares seen higher, 200-day MA resistance looms

Last Updated: Tue, Jul 31, 2012 01:10 hrs

HONG KONG, July 31 (Reuters) - Hong Kong shares were set to open slightly higher on Tuesday, rising for a fourth straight session, although the benchmark may stumble at a key chart level that has proven a strong resistance for the past two months.

The Hang Seng index rose 1.6 percent on Monday as hopes of more stimulus from central banks spurred short-covering, offsetting the continued weakness in China's mainland markets and a stream of profit warnings from local companies.

The Hang Seng is 0.3 percent below its 200-day moving average, which it has struggled to break convincingly since mid-June.

Both the U.S. Federal Reserve and the European Central Bank will hold policy meetings this week with investors waiting for signs of more steps to stimulate.

Closer to home, a plan by China to boost growth by encouraging private sector investments in developing sectors including railways, utilities and healthcare could provide some relief to beaten down shares of Chinese companies.

Elsewhere in Asia, Japan's Nikkei was down 0.3 percent while South Korea's Kospi was up 0.5 percent as of 0030 GMT.


* Revelations of lax anti-money laundering controls at HSBC are "shameful and embarrassing" for Europe's biggest bank, its boss said on Monday, and it may have to pay out well over $2 billion for the scandal and in compensation for UK mis-selling.

* China's third largest oil and gas company, CNOOC - the parent of CNOOC Ltd , has won government approval to build a liquefied natural gas (LNG) terminal in the southern city of Shenzhen, the National Development and Reform Commission (NDRC) said on Monday.

* The U.S. government should not approve a bid by China's state-owned CNOOC for the U.S. assets of Canadian oil firm Nexen unless the merged company agrees to pay royalties on all oil drilled offshore, or spins off the assets, Representative Edward Markey said on Monday.

* The parent of China's top copper producer, Jiangxi Copper Company Ltd , said on Monday it plans to invest in an 8 billion yuan ($1.25 billion) project to build smelting and refining capacity in Zhejiang province.

* Sany Heavy Equipment International Holdings Co Ltd said its financial position and outlook remain healthy, denying rumors that it will make large scale redundancies in research and development. It also said it intended to conduct an on-market share repurchase within 6 months.


- Great Wall Technology Co Ltd EGM in Shenzhen

- Hang Lung Group Ltd H1 results

- Hang Lung Properties Ltd H1 results

- Huaneng Power International, Inc. H1 results

- Lee & Man Paper Manufacturing Ltd AGM

- Sundart International Holdings Ltd AGM

- Wonderful Sky Financial Group Holdings Ltd AGM

- Z-Obee Holdings Ltd AGM & SGM


- Hong Kong Monetary Authority to release Monetary Statistics for June

- Hong Kong government to release its financial results for June

- US consumer confidence for July

- US core PCE price index for June

- US employment wages and costs for Q2

- Australia private house approvals for June

- Australia housing credit for June

- Japan construction orders for June

More from Sify: