HK stocks seen up as U.S. data spurs global rally

Hong Kong stocks are set to rise on Monday after better-than-expected payrolls data from the United States sparked a relief rally across global markets.

Stocks jumped and commodities rose on Friday after data showing fewer U.S. job losses than expected reinforced other reports this week easing fears the U.S. economy is on the cusp of a new recession.

"The job data report would be the main factor boosting investor confidence worldwide and sets the stage for Hong Kong and Shanghai stocks to rally," said Francis Lun, general manager at Fulbright Securities.

Lun forecast the Hang Seng Index to rise above 21,000 points following gains in overseas markets.

Turnover, which spiked late in the session on Friday ahead of the Hang Seng Index rebalancing, is expected to remain subdued because of the Labor Day holiday in the U.S.

The Hang Seng Index edged up 0.5 percent on Friday, pushing up its weekly gain to 1.8 percent. The index closed slightly above its 200-day moving average which had capped gains in recent sessions.

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Foxconn International Holdings Ltd, down nearly 45 percent in 2010 and the index's worst performers for the year, is expected to come under further pressure after reports of the company slashing its long-term sales growth targets.

Elsewhere in the region, Japan's Nikkei was up 1.2 percent while South Korea's KOSPI was 0.3 percent higher.

 STOCKS TO WATCH:

 - Foxconn Technology, the world's biggest electronic parts maker and maker of Apple Inc's iPhone, halved its long-term sales growth target to 15 percent per year as demand for iPhones and iPads failed to offset slowing PC sales, according to the Sept. 10 issue of Bloomberg Businessweek.

 - Casino operator Genting Hong Kong Ltd said it was not aware of any reasons for the increases in share price and trading volume on Sept. 3, when its shares jumped more than 30 percent to HK$2.91. The Business Times said last week that the market might have overlooked Genting's positive performance.

 - Zhaojin Mining Industry Co Ltd has entered into an agreement with Qinghe County, Xinjiang province to invest 500 million yuan ($73.52 million) from September 2010 to December 2012 in a project with a processing capacity of 2,000 tonnes per day.

 - Shenzhen Development Bank Co Ltd, which is merging with Ping An Insurance Group's bank unit, could see its 2011 earnings per share diluted by 8 percent to 1.68 yuan each, according to UBS.

 - China's central bank has set up a databank on corporate environmental records and banks were told not to approve loans to companies that have violated environmental rules, the Shanghai Securities News quoted Shao Fujun, director general of the credit management bureau of the PBOC as saying.

 - China's top economic planner and a leading government-backed research body disagreed at an auto industry forum over whether the world's biggest auto market is facing excessive capacity after breakneck growth in 2009.

 - Major Chinese automaker Chongqing Changan Automobile is in talks with Ford Motor to expand their partnership beyond China.

 - Nissan Motor is open to a green car alliance with Chinese automakers as it moves to tap the fledgling industry.