MARKET TALK: HSI +1.2%; CPY Tips N/T Range At 20,600-21,400

2nd Aug 2010 03:24

0224 GMT [Dow Jones] HSI +1.2% at 21,274.87, supported by gains in China markets (Shanghai Composite last +0.5%), with H-share index +1.4%, as investors taking China's July softening PMI data positively on expectation China may slow down tightening pace following data. Core Pacific-Yamaichi expects HK markets likely to rise further ahead if A-shares extend gains given expectation of China's less aggressive tightening stance. Expects investors will refocus on upcoming corporate results as well as management guidance for coming quarter. "We remain positive on the cement and railway sectors, in view of the FAI (fixed asset investment) expansion in infrastructure projects by central government in 2H10." Expects HSI to be in 20,600-21,400 range near term. HSBC (0005.HK) +0.5% at HK$80.15, Hang Seng Bank (0011.HK) +0.7% at HK$108.40 ahead of their interim results. Volume modest at HK$7.63 billion. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires August 01, 2010 22:24 ET (02:24 GMT)