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Hong Kong shares seen inching higher, chart level supports

Source : REUTERS
Last Updated: Tue, Aug 28, 2012 01:10 hrs

HONG KONG, Aug 28 (Reuters) - Hong Kong shares could inch higher on Tuesday, though any climbs will be marginal as investors wait for a meeting of central bankers later this week for fresh signs of easing from the U.S. Federal Reserve.

Corporate earnings will stay a focus, with Air China , China Life Insurance Co Ltd and China Mengniu Dairy Co Ltd reporting first half results later in the day.

The Hang Seng Index on Monday slipped 0.4 percent to 19,798.7, finishing just above chart support at its 200-day moving average, now at around 19,764.8. It has finished above that technical level on all but one session since July 31.

Elsewhere in Asia, Japan's Nikkei was up 0.2 percent at 0042 GMT, while South Korea's KOSPI had dropped 0.1 percent.

FACTORS TO WATCH

* China's biggest hypermarket chain, Sun Art Retail Group Ltd, said on Tuesday its first-half net profit rose 75 percent, beating forecasts and signalling the company's resilience to an economic slowdown thanks to cost controls and its expanded retail network.

* The closing of Glencore International PLC's C$6.1-billion ($6.2 billion) takeover of Canadian grain handler Viterra Inc will stretch into September, Viterra said on Monday.

* Angang Steel Co Ltd posted a 1.98 billion yuan ($311 million) loss for the first half of 2012, compared to a 220 million yuan profit a year ago.

* BYD Co Ltd , a Chinese carmaker backed by billionaire investor Warren Buffett, posted a 94 percent drop in first-half earnings, underperforming most of its rivals as sales sagged and its solar energy business lost money.

* China Southern Airlines , China's largest carrier by fleet size, said its first half net profit fell 85 percent year on year to 424 million yuan.

* Foxconn International Holdings Ltd (FIH), the world's biggest contract maker of cellphones, posted its worst-ever first-half net loss due to dismal orders from key clients such as Nokia Oyj hit by the economic slowdown.

* Sinopec Group, parent company of Asia's largest refiner, Sinopec Corp, is working on a plan to inject its overseas assets into its listed unit, its chairman said on Monday, a move aimed at cutting the unit's exposure to unprofitable refining at home.

* China Construction Bank said on Monday it is 'unrealistic' to expect the bank's total amount of non-performing loans to fall in the second half of this year.

($1 = 6.3568 Chinese yuan) (Reporting by Clement Tan and Donny Kwok; Editing by Joseph Radford)



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