Feb. 25, 2010 (Chinavestor) Shares of Chinese companies traded sideways in Asia on Thursday. The Hang Seng Index opened higher but shed most of the gains to close -66.17 points or -0.33% lower at 20,399.57. The best performer of the index was China Eastern Airlines (HKG:0670) for the third day in a row after advancing +2.3% on Thursday. Strong money flows help China's second largest airline to outperform the rest of the market. Investors have started to snap up shares of the company ahead of the World Expo 2010, opening in May. Organizers expect tens of millions of visitors for the event boosting outlook for China Eastern Airlines, a company that dominates the skies over Shanghai.
Traders in Shanghai were looking for direction for the market as well. The Shanghai Composite Index advanced +38.44 points or +1.27% to 3,060.62 at the close. The advance was universal, only two stocks out of the 50 components of the SSE-50 index fell. Oversold financial and real estate stocks led the rally with S/Puding Development Bank (SHA:60000) advancing 5.5%.
Weak jobless numbers and doubts over Greece's debt pushed index futures lower ahead of the bell. This is bad news for the China stock investor as Chinese stocks can't fight the market. Expect momentum China plays to suffer the most on Thursday - albeit strong earnings from NetEase.com (NASDAQ:NTES) might be able to keep the shares of the online game sector from falling.
U.S. Treasuries have been on the slide, a bad omen for the markets. Most Chinese ETFs and indices are looking for direction, just as are key commodities - as the following chart testifies.