Hong Kong shares to start firmer; China data eyed

HONG KONG, Jan 17 (Reuters) - Hong Kong shares were
set to start higher on Tuesday, tracking regional peers with
investors looking towards a fresh batch of China data due
shortly after the market open for policy cues that will provide
firmer direction.

On Monday, the Hang Seng Index declined 1 percent to
19,012.2 points, with losses capped at chart support levels as
investors took profit on last week's outperformers and turnover
slumping 27 percent from Friday.

The benchmark finished near the bottom of a narrow 85-point
range, supported at 19,000 after failing to breach resistance
levels of around 19,242 last week. Its near downside target is
seen at about 18,858, its close on Jan. 9 before it jumped last
week.

China data due at about 0200 GMT is expected to show
economic growth slowing to an annual 8.7 percent from 9.1
percent, according to a Reuters poll. Beijing will also release
December industrial output, investment and retail sales figures.

Weaker than expected numbers could boost hopes of monetary
policy easing sooner rather than later, but also trigger a spike
in short selling in several Chinese names, particularly by
foreign investors.

The Chinese property sector may come under pressure after
Evergrande Real Estate Group Ltd, the second-biggest
developer in China by sales value, forecast flat 2012 sales and
said the wider property market would be gloomy in the first
quarter, with no improvement until after the lunar new year.

In a report dated January 16, Nomura analysts urged
investors to stock pick in the sector in the first half of the
year, looking towards developers' ability to execute and quality
of products.

The Chinese property sector could turn into a fundamental
buy in the second half, when policy is certain to ease, they
said.

Elsewhere in Asia, Japan's benchmark Nikkei was up
0.5 percent at 8,420 points, while the Korea Composite Stock
Price Index (KOSPI) was up 1.3 percent at 1,856.5 points
at 0034 GMT.

HOT STOCKS:

* Cathay Pacific Airways Ltd, the world's largest
air cargo carrier, said on Monday its December freight volume
fell about 12 percent, ending 2011 on a disappointing note, and
it saw no sign of improvement in the near term.

* Profits at China's securities brokerages fell nearly 50
percent in 2011 compared to a year earlier, according to
industry association figures released Monday.

* China Construction Bank Corp, China's No.4
lender, said on Monday that it has appointed Wang Hongzhang as
chairman of the board.

* State-run Chinese lender Agricultural Bank of China
said on Monday that it has appointed Jiang Chaoliang
as chairman of its board.

* Great Wall Motor's board has
approved the company's plans to repurchase H shares not
exceeding 10 percent of its outstanding H shares. The plan is
still subject to regulatory approval and will result in a
reduction of Great Wall Motor's registered capital. For
statement please click here

MARKET SUMMARY
> Euro holds off low for now; China data eyed
> Gold firms as stocks recover, euro lifts from lows
> Oil prices gain after Iran warning
> ECB buying supports Italy, Spain after downgrades

(Reporting by Clement Tan and Lee Chyen Yee; Editing by
Jonathan Hopfner)