Hong Kong shares seen higher, trimming weekly losses

Last Updated: Fri, Jul 27, 2012 01:10 hrs

HONG KONG, July 27 (Reuters) - Hong Kong shares are likely to start higher on Friday after the European Central Bank signalled its resolve to defend the euro zone, raising hopes it would move to tackle escalating borrowing costs in some of its member states.

Short-covering could help benchmark indices trim losses on the week. Short selling interest exceeded 10 percent of total turnover in the first four days of this week, above the 8 percent typically seen.

On Thursday, the Hang Seng Index ended up nearly 0.1 percent at 18,892.8 points. The China Enterprises Index of the top Chinese listings in Hong Kong finished down 0.1 percent at 9,210.9.

The Hang Seng and the China Enterprises indices are both down 3.8 percent on the week so far.

Elsewhere in Asia, Japan's Nikkei rose 1 percent, while South Korea's KOSPI had climbed 1.4 percent by 0054 GMT.


* AIA Group Ltd, Asia's No. 3 insurer, reported a 28 percent rise in the value of new business in the first half of the year. Value of new business (VONB), a key metric for insurance companies that measures the present value of future business, rose 28 percent to $512 million in the first half, while VONB margins climbed 6.6 percentage points to 42.6 percent.

* Brazil's Vale sought to reassure investors on Thursday that it is well-positioned to weather a slowdown in Chinese demand, a day after it posted its worst earnings results in two years.

* Foxconn International Holdings Ltd, which assembles handsets for companies such as Nokia Oyj and Motorola Mobility, said it has appointed Executive Director Chih Yu Yang as its new chief executive officer with effect from Thursday. He replaces Cheng Tien Chong, who is stepping down to spend more time with his family and to improve his health.

* Shares of oil majors in China are set to be a focus after weaker oil and gas prices took their toll on Royal Dutch Shell's second-quarter profits, while extra maintenance costs on high-margin U.S. Gulf production drove earnings below analysts' expectations.

* The buyer group of MBK Partners' stake in a Taiwan cable TV unit said on Thursday it is not sure whether the conditions laid out by local regulators for the $2.4 billion deal are achievable, though it still aims to close the purchase. Nearly two years since MBK announced the sale of China Network Systems (CNS), the National Communications Commission gave a conditional nod to the buyer group, led by Want Want China, one of China's biggest rice cake makers and owner of a media conglomerate in Taiwan.

* Glencore International Plc , one of the world's largest commodities suppliers, has won approval from Australian regulators for its C$6.1 billion ($6 billion) takeover of grain handler Viterra Inc.

* GCL-Poly Energy Holdings Ltd said it would sell its photovoltaic solar generating facilities in California to a U.S. renewable energy operator for $266 million, raising proceeds for investment in future solar projects. For statement click: http://www.hkexnews.hk/listedco/listconews/sehk/2012/0726/LTN20120726535.pdf

* China Zhongwang Holdings Ltd said it expected to see a substantial increase in first half net profit mainly due to an increase in sales revenue. For statement, click: http://www.hkexnews.hk/listedco/listconews/sehk/2012/0726/LTN20120726189.pdf

(Reporting by Clement Tan and Donny Kwok; Editing by Joseph Radford)

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