November 2, 2010 (Chinavestor) Investors digested big gains from Monday sending both key Asia markets for Chinese stocks sideways. The Hang Seng Index (INDEXHANGSNEG:.HSI) eked out a small, 18.5 points or 0.1% gain while the Shanghai Composite Index (SHA:000001) shed 8.6 points or -0.3%. Some investors suggests the Shanghai Composite Index (SHA:000001) will be range bound after a 30% rally in less than two months. Investors keep close eye on Chinese policy makers whether they would follow monetary tightening after Australia and India.
But CNOOC ltd. (HKG:0883) (NYSE:CEO) rose +1.3%, while Guangshen Rail (HKG:0525) (NYSE:GSH) advanced+0.6% followed by China Unicom (HKG:0762).
Index futures point to a slightly higher open for major U.S. indices as mind-term elections begin. If components of the Hang Seng index (INDEXHANGSENG:.HSI) can serve as a proxy for China ADR trading, outlook is best for CNOOC Ltd. (NYSE:CEO) and Guangshen Rail (NYSE:GSH). But China eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH) are most likely to fall on the NYSE today. Aluminum Corp. of China (NYSE:ACH) and China Life Insurance (NYSE:LFC) may be able to gain but that's subject to overall market sentiment.