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)
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