Hong Kong shares set to drop at open

Source : REUTERS
Last Updated: Wed, Sep 26, 2012 00:50 hrs

HONG KONG, Sept 26 (Reuters) - Hong Kong shares were headed to open lower on Wednesday as weak overseas markets and festering eurozone concerns dented investors' enthusiasm for chasing this month's rally.

The Hang Seng index, which is up 6.2 percent so far this month, ended flat on Tuesday with transportation and financials among the big losers. The China Enterprises index of top locally listed mainland firms fell 0.2 percent.

China's domestic markets remained on the back foot after its central bank again dampened expectations of a cut in banks' reserve requirements by injecting a record amount of funds into the market on Tuesday.

Worries over whether debt-laden Spain would ask for a bailout trumped better-than-expected U.S. consumer confidence data overnight sending the S&P 500 down over a percent.

Elsewhere in Asia, Japan's Nikkei slumped 1.6 percent while South Korea's Kospi was down 0.5 percent as of 0030 GMT.

STOCKS TO WATCH:

* Trader Glencore has trimmed its ambitions to control Kazakh zinc producer Kazzinc, announcing a revised cash and shares agreement worth up to $1.4 billion, less than half the original deal, to raise its stake to just under 70 percent.

* China's minister of commerce said on Tuesday that the country's state-owned companies act as corporations and obey local laws as he asked Canadian regulators to make a "fair and objective" analysis of their involvement in acquisitions. Chen Deming spoke as Canada studies CNOOC Ltd's planned $15.1 billion acquisition of Nexen Inc.

* RUSAL, the world's largest aluminium producer, expects to reach a deal with lenders within six months to refinance part of an $11 billion debt burden and will agree new loan conditions by the end of 2012, before its covenant "holiday" expires.

* Standard Chartered Plc shares fell more than 3 percent on Tuesday as speculation resurfaced that Singapore state investor Temasek may sell its 18 percent stake in the Asia-focused bank.

* Hong Kong-listed Brightoil Petroleum (Holdings) Ltd will hire about 10 traders in Singapore and the United States to start physical crude oil trading, a company executive said on Tuesday.

* A brawl at a Foxconn factory that disrupted production at Apple's main China supplier for 24 hours highlights regimented dormitory life and thuggish security as major sources of labour tension in China. (Reporting by Vikram Subhedar and Donny Kwok; Editing by Eric Meijer)




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