HK stocks set to open up on Greece aid hopes

HONG KONG (BestGrowthStock) – Hong Kong stocks will likely rebound on Monday after five successive losing sessions as battered investor sentiment receives a boost from news of an European Union plan to halt the spread of Greece’s fiscal woes.

U.S. stock index futures were up over 2 percent as of 0100 GMT, underpinning equity markets across Asia.

European Union finance ministers sought agreement on Sunday on emergency measures that could include loan guarantees by euro zone countries worth 440 billion euros ($561.4 billion), a stabilization fund worth 60 billion euros and a 100 billion euro top-up of International Monetary Fund loans, sources told Reuters.

The benchmark Hang Seng index (.HSI: ) is coming off of its worst weekly performance in over five months and closed on Friday below the key support levels, including its 250-day moving average currently at 20,543. The Hang Seng ended the week at 19,920.3.

The Hang Seng’s relative strength index was at 30, or at the level generally considered “oversold,” indicating that stocks might bounce at the open.

Its February lows of 19,400-19,500 are the next support levels traders will be watching on the downside.

“Hope of some good news from the EU ministers is seen giving support while a technical rebound may allow the index to open up some 100-200 points,” Conita Hung, head of equity research at Delta Asia Financial

Markets are also awaiting important macroeconomic data from China, including trade and lending numbers, which will influence the extent to which the government will control lending and tighten policy to curb inflation.

In the region, Japan’s Nikkei (.N225: ) and South Korea’s KOSPI (.KS11: ) were up over a percent. Stocks in Taiwan (.TWII: ) opened 0.6 percent higher.

STOCKS TO WATCH

– UK-based bank Standard Chartered’s (STAN.L: ) (2888.HK: ) shareholders have approved plans to allot shares in connection with its planned India listing, the company said on Friday.

– China National Offshore Oil Corp, parent of offshore oil and gas specialist CNOOC Ltd (0883.HK: ), announced on Friday the first batch of 2010 tenders of 13 offshore blocks in the South China Sea for foreign cooperation.

– Wynn Resorts Ltd (WYNN.O: ) said net revenues from Wynn Macau (1128.HK: ) increased to $590.65 million for the first quarter of 2010, from $448.68 million the same period a year ago. Wynn Macau saw a 47.4 percent increase in the VIP revenue segment. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20100509/LTN20100509003.pdf

– China State Construction International (3311.HK: ) said it would buy Chinese construction contractor Yangquan Yangwu Expressway Investment Management for 1.28 billion yuan ($187.5 million) to enhance its infrastructure investment portfolio. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20100507/LTN20100507791.pdf > US stk futures dart higher on hopes for EU aid deal (.N: ) > Euro up on talk of EU package, trade jittery > Bonds fall as stocks swing overrides jobs gain > Gold drops 1.5 pct as Greek euro zone fears ease > U.S. crude rises above $76 on Greece aid

Investment Analysis

(US$1=HK$7.76)

(Reporting by Vikram S Subhedar and Donny Kwok; Editing by Jonathan Hopfner)

HK stocks set to open up on Greece aid hopes