Hong Kong shares seen higher, but gains capped by 200-day average

June 20 (Reuters) - Hong Kong shares are expected to start
higher on Wednesday on hopes the U.S. central bank could launch
a new round of stimulus, but gains are likely to be limited by
chart resistance tested earlier this week.

Some investors expect the Federal Reserve to extend its
long-term bond-buying through "Operation Twist" by a few months
from its planned end later in June. The Fed began a two-day
policy-setting meeting on Tuesday.

The Hang Seng Index on Tuesday closed down 0.1
percent at 19,416.7. Any climb on Wednesday could be capped by
the benchmark's 200-day moving average, currently at about
19,591.4, a technical level that limited gains on Monday.

Elsewhere in Asia, Japan's Nikkei was up 0.8 percent
and South Korea's Kospi had gained 0.5 percent by 0037
GMT.

FACTORS TO WATCH:

* Tencent Holdings, China's biggest Internet
company by revenue, agreed to acquire a minority stake in
privately held Epic Games Inc, a developer of 3D game engine
technology.

* Samsonite, the world's biggest luggage-maker, is
to replace the handles on its American Tourister brand's Tokyo
Chic inventory, amid claims some products contained high levels
of chemicals that may be carcinogenic.

* A unit of China's state-owned aluminum producer Chinalco
on Tuesday launched a pared-down Hong Kong IPO without Morgan
Stanley and UBS, which may have dropped out on
concerns over the unit's dealings in Iran, sources said.

The deal could raise up to $200 million, Thomson Reuters
publication IFR reported, with China International Capital Corp
(CICC) and Guangfa Securities as its bookrunners.

* The race to win a bigger slice of Southeast Asia's
insurance market is heating up as AIA Group, Manulife
and Prudential PLC compete for mid-size
acquisitions in the region totalling up to $1 billion, sources
said.

* Russia's RUSAL, the world's biggest aluminium
producer, is prepared to cut output and costs this year to
support prices, which could recover in 2013 if China also
reduces production, a senior executive told Reuters.

RUSAL also said the Export-Import Bank of China
would help it finance its up to $850 million greenfield project
in Eastern Siberia.

* China Mengniu Dairy Co Ltd, the country's
biggest maker of dairy products, said on Tuesday that it will
join forces with Danish-Swedish dairy group Arla Foods
to develop dairy products in China.

* Genting Group, parent of Genting Hong Kong, has
increased its stake in Echo Entertainment to almost 10
percent, sources with knowledge of the matter said, putting the
Malaysian gaming operator on par with billionaire James Packer
seeking to gain control of the Australian casino operator.

* NVC Lighting Holding Ltd, China's largest maker
of lighting products, said on Tuesday it was investigating media
reports that Chinese authorities have detained its founder, Wu
Changjiang. The company referred to "media reports" but did not
give details on why he may have been held. The reports said Wu
had been detained by police in Chongqing, the city where Bo
Xilai was ousted as Communist Party boss in a scandal that
rocked the country.

* SouthGobi Resources Ltd said it has started the
construction of a new paved coal highway to the Mongolia-China
border. For statement clicks here

* Alibaba.com Ltd said the withdrawal of the
listing of its shares on the Hong Kong Stock Exchange is
expected to become effective after the market closes on June 20.
For statement clicks here

(Reporting by Clement Tan and Donny Kwok; Editing by Joseph
Radford)