Hong Kong shares seen lower, but poised for 5th weekly gain

HONG KONG, Feb 3 (Reuters) - Hong Kong shares were set
to open lower on Friday, as investors await fresh U.S.
employment data later in the day that could provide fresh clues
on the state of the world's largest economy.

Losses on the Hang Seng Index on Friday are seen
limited by its 200-day moving average, about 20,547.7. The
benchmark is still poised for its fifth-straight weekly gain,
currently up 1.7 percent.

On Thursday, the Hang Seng Index gained 2 percent to
finish at 20,739.5 points, breaching above at its 200-day moving
average, which has provided stiff resistance in the last four
sessions.

The next upside target on the charts is seen at
20,975-21,017, the highs reached in September and August,
respectively. In addition, 21,017 is the bottom of a gap that
opened up between Aug. 4 and 5.

Short selling on Thursday hit its highest since January 9,
accounting for 9.8 percent of total turnover on the Hong Kong
main board.

Chow Tai Fook saw short interest amounting to 36
percent of its total turnover on the first day shorting was
allowed on the stock.

Elsewhere in Asia, Japan's benchmark Nikkei was down
0.2 percent at 8,859.9 points, while the Korea Composite Stock
Price Index (KOSPI) was down 0.4 percent at 1,975.8
points at 0037 GMT.

FACTORS TO WATCH:

* China Overseas Land & Investment Ltd, the
largest mainland property developer by market value, on Thursday
forecast an 8 percent decline in its sales this year, which its
top executive said will be "challenging" for developers.

* PetroChina Co Ltd has signed an
agreement to buy a 20 percent stake in a shale gas project in
Canada from Royal Dutch Shell Plc, the latest in a
series of overseas acquisitions by Chinese state energy giants.

* China National Offshore Oil Corp (CNOOC),
China's biggest offshore energy firm, is spending $300 million
for a majority stake in a new joint venture with Spain's solar
company Isofoton SA, a source familiar with the deal told
Reuters.

* Total fuel oil inflows into East Asia for February are at
an all-time high of more than 7 million tonnes, boosted mainly
by Western arbitrage volumes standing at their highest in more
than seven years, and drawn to meet strong demand, traders said
on Thursday.

* Commodities trader Glencore is in talks
to buy mining group Xstrata in an all-share transaction
that could create a combined group worth more than 50 billion
pounds ($79 billion), shaking up the industry with its biggest
deal to date.

* AIA Group Ltd is expected to name Deutsche Bank
and Morgan Stanley as advisers for a possible
bid for ING's Asian insurance operations, sources said
on Thursday, a deal that could be worth more than $6 billion.

* Property deals in Hong Kong, one of the world's most
pricey real estate markets, fell to their lowest level since the
aftermath of the 2008 Lehman Brothers bankruptcy, according to
government data released on Thursday.

* A government spokesman said retail sales remained robust
in Hong Kong in December, showing notable year-on-year increases
across a wide range of retail outlets, rising 23.4 percent
year-on-year.

* Chinese gold and copper miner Zijin Mining Group Co Ltd
reported on Friday an estimated 5.8 billion
yuan ($919.58 million) profit for 2011, up 20 percent from the
prior year.

* Hutchison 3G, a unit of conglomerate Hutchison Whampoa
, has signed an agreement to buy a 100 percent stake in
Orange Austria from France Telecom and a private equity
firm for 1.3 billion euros in enterprise value, a source
familiar with the matter told Reuters on Friday.

* China's ban on large ships is limited to Vale's
giant iron ore vessels, shipping sources
said on Thursday, clearing up confusion in the maritime
community as to whether new government regulations could cover
other smaller ships.

* Wynn Macau posted a 14.9 percent increase in
fourth quarter net profit year on year.

MARKET SUMMARY:
> Wall St holds steady as payrolls set to test rally
> Dollar edges up vs euro before U.S. jobs report
> Treasuries little changed on jobs hope, Europe concerns
> Gold rises to two-month high,, awaits U.S. payrolls
> Brent up, U.S. crude down, premium near 3-month high

(Reporting by Clement Tan and Donny Kwok; Editing by Jonathan
Hopfner)