HK stocks seen higher; focus on AgBank, China GDP

HONG KONG, July 9 (Reuters) - Hong Kong stocks are set to
rise on Friday after Wall Street rallied for a third day on
upbeat economic data and retail sales.

Hong Kong's Hang Seng Index .HSI has alternated between
gains and losses in choppy thin volume but is on course to end
the week higher after the 3.8 percent dip last week.

With books closing on Agricultural Bank of China's [ABC.UL]
mammoth initial public offering, the focus is shifting to its
trading debut next week which will coincide with China's GDP data
and JP Morgan Chase's (JPM.N) quarterly earnings report in the
United States, all expected on Thursday.

China's second-quarter GDP is likely to show moderating
growth, although expansion could still be in double digits,
helping to allay some of the fears of a hard landing and
prompting money that has stayed on the sidelines to return to
Chinese shares. [ID:nTOE66602P] [ID:nTOE66601Z]

"I would expect volatility to increase moving into next week,
especially given the market's susceptibility to move on whisper
numbers, evidenced by PMI last week," said the regional head of
sales trading at a large European bank.

The Hang Seng index ended up 1 percent higher on Thursday at
20,050.56, with HSBC (0005.HK) and Standard Chartered (2888.HK)
leading banks higher. The China Enterprises Index .HSCE, which
fell over 5 percent last week, closed 0.6 percent higher on
Thursday.

In the region, Japan's Nikkei .N225 was 0.1 percent lower
while South Korea's KOSPI .KS11 rose 0.5 percent led by
technology shares, as of 0110 GMT.

STOCKS TO WATCH:

- China Resources Power Holdings (0836.HK) said late on
Thursday that its chairman Song Lin had resigned and that its
board has appointed Wang Shuai Ting to take his place. For
statement, please click:
here

- Guotai Junan International Holdings (1788.HK), the global
arm of one of China's top brokerages, will explore a European
expansion and foreign exchange trading as it seeks new growth
areas this year, its chief executive told Reuters in an interview
on Thursday. [ID:nTOE667073].

- Google Inc (GOOG.O) chief executive Eric Schmidt said on
Thursday he is confident the company will secure a license to
operate a website in China, amid speculation Beijing will reject
its application. [ID:nN08260404].

- Securities and Futures Commission chief executive Martin
Wheatley expects Hong Kong's first yuan investment products to be
launched this year, moving the city a step closer to its goal of
becoming an international offshore yuan trading centre, the South
China Morning Post said on Friday.

- Dongyue Group (0189.HK), which makes refrigerants and
polymers, said it expects its unaudited consolidated profit for
the first half to more than triple from the same period a year
ago due to higher selling prices and sales. For statement, click:
here
MARKET SUMMARY
*Wall St rises 3rd day on data, retail sales [nN08238477]
*Oil above $75 on US crude stock drop, jobless data [nN08234511]
*Risk appetite pushes euro to 2-mo high vs dollar [nN08236750]
*Treasuries fall as stocks rise on stronger data [nN08576205]
(Reporting by Vikram S Subhedar, Editing by Jacqueline Wong)