HONG KONG, April 6 (Reuters) - Hong Kong shares could edge higher on Wednesday, but are expected to be rangebound amid investor caution after China's latest interest rate increase on Tuesday.
The Hang Seng Index was closed on Tuesday for a public holiday, but ended Monday trade up 1.5 percent at 24,150.6, the highest since Jan. 20. This followed a gain of 2.8 percent last week and 3.9 percent the week before.
Traders said six of the top 10 market cap stocks were technically overbought. PetroChina Co Ltd , Industrial and Commercial Bank of China Ltd , China Construction Bank Corp , Bank of China Ltd , Agricultural Bank of China Ltd and CNOOC Ltd have relative strength index values of more than 70.
Elsewhere in Asia, the benchmark Nikkei opened up 0.6 percent at 9,668.11, while the Korea Composite Stock Price Index (KOSPI) opened down 0.12 percent at 2,127.95.
HOT STOCKS
* Chinese banks are expected to be in focus after China's central bank lifted interest rates on Tuesday for the fourth time since October, raising suspicions that data next week may show inflation rose more than expected in March. [ID:nL3E7F51LX] * Anhui Conch Cement Co Ltd said on Wednesday that it expected unaudited net profit attributable to equity shareholders for the first quarter to rise more than 150 percent. [ID:nL3E7F53CS] * Copper prices could return to more than $10,000 per tonne this year, driven by Chinese growth, the head of Brazilian miner Vale's copper division said on Tuesday at the CRU world copper conference in Santiago. World No.1 steel producer Vale SA
has identified copper and fertilisers as key areas for expansion. [ID:nN05156596] * Vale said its controlling shareholder had nominated Murilo Pinto de Oliveira Ferreira to succeed Roger Agnelli as chief executive officer from May 22. The nomination is subject to approval by Vale's board of directors in a meeting yet to announced. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20110406/LTN20110406013.pdf * Minmetals Resources Ltd , China's biggest metals trading company, said it sought to add assets from Africa and South America to its portfolio over the next five years -- with copper, lead, and zinc at the top of its priority list -- in a bid to become a diversified mining company. [ID:nL3E7F518J] * First Pacific Co Ltd said its indirect agri business unit PT Salim Ivomas Pratama was planning to list on the Indonesian stock exchange. For statement click http://www.hkexnews.hk/listedco/listconews/sehk/20110405/LTN20110405035.pdf MARKET SUMMARY * S&P hovers near resistance, but volume still weak * Yields gain as investors fear more hawkish Fed * Euro, sterling advance on higher rates view * Brent jumps to 2-1/2 year peak, U.S. Oil slips (Reporting by Clement Tan and Donny Kwok; Editing by Chris Lewis)
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