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HK stocks seen easier on Dow, rate concerns

HONG KONG: Hong Kong stocks are expected to move lower on Wednesday after Tokyo opened down and the Dow industrials pulled back overnight on jitters about rising interest rates.

"The market is likely to open lower amid interest rate concerns. People are talking about a total 75 basis point rise this year," said Sunny Chan, research analyst at KGI Asia Ltd.

But technology stocks, which pushed the main index up on Tuesday, would continue to move ahead following the Nasdaq's 1.64 percent gain to 4,130.81 points.

The Hang Seng Index ended up 214.64 points or 1.38 percent at 15,789.20 on Tuesday. "Good news from blue chip companies including the government's announcement about issuing five wireless fixed telecommunication network services (FTNS) licences should give the market a good support," said Alex Tang, research director at Core Pacific-Yamaichi International (HK).

Henderson Investment and Henderson Land were likely to rise after news that Henderson Investment's Eastar Technology Ltd would receive an FTNS licence, he said.

The other four licensees were: Smartone Mobile Communications Ltd,Net Hong Kong Ltd, City Telecom (HK) Ltd's Hong Kong Broadband Network Ltd and HK Net-Teligent Company Ltd.

Cheung Kong and Hutchison could see continued buying on hopes that the companies would announce more Internet and e-commerce projects after the launch of their Website www.tom.com on Tuesday, Tang said.-Reuters