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HK shares likley to climb on corporate earnings push

Published: 30 Jul 2009 17:30:42 PST

HONG KONG, July 31 - Hong Kong shares are seen gaining on Friday, boosted by positive earning momentum, but their advance may be checked by caution ahead of key economic data releases next week.

Datang International Power Generation Co. Ltd. said late on Thursday that first-half net profit may have increased by more than half as sales revenue was boosted by adjustments to on-grid tariffs and thermal prices.

U.S. stocks rose on Thursday, boosted by solid corporate profit reports from companies including MasterCard <MA.N>, a drop in the number of Americans on jobless benefits, and a surge in commodities prices.

But U.S. President Barack Obama braced the country for more bad economic news on Thursday, saying second-quarter GDP figures would show the economy contracted and job losses were still a "huge" problem.

The benchmark Hang Seng Index rose 0.5 percent in volatile trade on Thursday, stabilising after the previous sessions's sell-off.

STOCKS TO WATCH-

* China Insurance International Holdings Co Ltd said late on Thursday that it had completed an acquisition of 1.39 billion shares of Ming An (Holdings), fulfilling a pre-condition of taking Ming An private. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090730/LTN20090730797.pdf

* BYD Company Ltd said on Thursday that the China Securities Regulatory Commission had granted approval and MidAmerican Energy had completed its purchase of 225 million new H shares holding 9.89 percent of the company. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090730/LTN20090730509.pdf

* Hutchison Whampoa has been upgraded by HSBC Global Equity Research to "neutral" from "underweight" after its 2009 recurring net profit forecast was raised by 12 percent, and the outlook for property, Asian retail and Husky earnings improved. ----------------------MARKET SNAPSHOT @ 2247 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 <.SPX> 986.75 1.19% 11.600 USD/JPY <JPY=> 95.52 -0.04% -0.040 10-YR US TSY YLD <US10YT=RR> 3.6152 -- 0.000 SPOT GOLD <XAU=> 933.85 0.06% 0.550 US CRUDE <CLc1> 66.59 -0.52% -0.340 DOW JONES <.DJI> 9154.46 0.92% 83.74 ------------------------------------------------------------- > Wall St climbs on ernings, but Disney off late [.N] > Dollar slides as oil, stocks rally cuts haven deman [USD/] > Long-date bonds rise as auction offers relief [US/] > Gold rises as oil, stocks rally; dollar softens [GOL/] > Oil jumps 5 pct, economic data raises recovery hope [O/R]