Aug. 5, 2010 (Chinavestor) Investors remained cautious ahead of U.S. jobs report in Asia on Thursday. The Hang Seng Index (INDEXHANGSENG:.HSI) rose a mere 1.8 points or 0.0 percent while the Shanghai Composite Index (SHA:000001) shed 17.8 points or 0.7 percent for the day.
Airliners pulled Hong Kong stocks higher; Air China (HKG:0753), China Eastern Airlines (HKG:0670) (NYSE:CEA) and China Southern Airlines (HKG:1055) (NYSE:ZNH) all advanced over one percent. Increased passenger traffic and strong profit growth expectations have been fueling the sector. Telecoms were mixed, China Telecom (HKG:0728) (NYSE:CHA) fell but China Mobile (HKG:0941) (NYSE:CHL) advanced. The sell-off was universal in Shanghai, stock that fell outnumbered those that advanced ten to one. Financial and construction material stocks led the decline as investors were baffled with slower economic growth.
Sina Corp. (NASDAQ:SINA) and China Integrated energy (NASDAQ:CBEH) reported quarterly earnings after the close on Wednesday. Sina Corp. (NASDAQ:SOINA) beat revenue and earnings estimates plus guided higher. China Integrated Energy (NASDAQ:CBEH) beat expectations as well.
If Hong Kong can serve as a proxy, Thursday is potentially good day for China Eastern Airlines (NYSE:CEA), China Southern Airlines (NYSE:ZNH), China Mobile (NYSE:CHL) and Guangsen Rail (NYSE:GSH). But China Telecom (NYSE:CHA) is in trouble ahead of the open on Thursday.