HONG KONG, Oct 26 (Reuters) - Hong Kong shares could start
lower on Friday, with Apple Inc's disappointing third
quarter earnings possibly halting a 10-day winning streak on the
Hang Seng Index.
On Thursday, the Hang Seng Index ended up 0.2 percent
at 21,810.2 points, its highest close since early last August
and equalling a 10-day winning streak recorded in February 2006.
It last rose for 11 days in a row in November 1999.
It is up 1.2 percent so far this week, set for an
eighth-straight weekly gain, which will equal a weekly winning
streak posted in September and October 2007 and the longest
weekly streak since the benchmark rose for 10 consecutive weeks
in January to March 1991.
Up 14 percent from a Sept. 5 low and 18 percent on the year,
the market now faces stiff chart resistance. The 14-day relative
strength index (RSI) hovered at two-year highs, suggesting the
market is overbought.
Elsewhere in Asia, Japan's Nikkei is up 0.2 percent,
while South Korea's KOSPI is down 0.2 percent at 0100
FACTORS TO WATCH:
* Brazilian mining company Vale
plans to sell underperforming assets to control costs and boost
profit, executives said on Thursday, a day after reporting weak
earnings and halting work on a giant iron ore mine in the West
African nation of Guinea.
* ZTE Corp , the world's fourth-biggest
maker of mobile phones and fifth-ranked telecommunications
equipment manufacturer, reported its first quarterly loss - of
$310 million - since listing in Hong Kong in 2004, on shredded
margins, project delays and accounting changes in China.
* CITIC Securities Co Ltd said on
Thursday it would buy the remaining 80 percent of CLSA
brokerage, showing the ambition of China's biggest listed
brokerage to expand overseas as growth in its home market slows.
* Bank of China Ltd, the country's No.4 lender,
posted its biggest quarterly profit gain in a year after cutting
back on bad-loan provisions, prompting concerns that it may face
a cash crunch if more borrowers default as the economy worsens.
* BOC Hong Kong (Holdings) Ltd said its Q3 net
operating income before impairment allowances amounted to HK$8.9
* Datang International Power Generation Co Ltd
said its Q3 net income jumped to 716 million yuan
from 355 million yuan.
* Kweichow Moutai Co Ltd, China's largest maker
of "baijiu" liquor, said its Q3 net income rose to 3.4 billion
yuan from 1.7 billion yuan.
* PepsiCo Inc and Tingyi (Cayman Islands) Holding
Corp announced opening of a new beverage plant in
China, creating about 500 jobs.
* Hong Kong Aircraft Engineering Co Ltd (HAECO), a
subsidiary of property conglomerate Swire Pacific Ltd,
said on Thursday its profits for the second half of this year
and at least the first half of 2013 will be hit by a shortage of
skilled and semi-skilled labour.
* Great Wall Motor Co Ltd said its Q3 net profit
more than doubled to 1.5 billion yuan.
* China Oilfield Services Ltd , a
leading provider of oilfield services in the offshore China
market, said its Q3 net profit rose 9.9 percent to 1.4 billion
* China Unicom (Hong Kong) Ltd , the
country's second-biggest mobile phone operator, posted a 27
percent rise in third-quarter net profit after subscribers on
its 3G network increased strongly, although the gain lagged
* Melco Crown Entertainment Limited said it has
entered into an agreement to develop a casino, hotel, retail
and entertainment complex in the Philippines with investment
amounting to about $600 million.
* CSR Corporation Ltd , the world's No.
2 railway equipment maker, reported a 20.9 percent rise in Q3
net profit to 934 million yuan. It said Zhao
Xiaogang and Tang Kelin resigned as executive directors with
effect from Oct 25 as they reached retirement age.
* Sinopharm Group Co Ltd said its net profit for
the third quarter ended in September amounted to 104.7 million