Hong Kong shares may start lower, China in focus after Monday rout
HONG KONG, June 25 (Reuters) - Hong Kong shares may start weaker on Tuesday as investors brace for the first of two open market operations in the mainland to gauge the extent of the cash crunch that has raised fears of a banking crisis.
China shares suffered their worst daily loss in almost four years on Monday, with financials hammered on fears that the central bank would keep money tight and economic growth could slow sharply.
The Hang Seng Index dropped on Monday for a fourth straight day, ending down 2.2 percent at 19,814 points. The China Enterprises Index of the top Chinese listings in Hong Kong sank 3.2 percent to its lowest since October 2011.
Elsewhere in Asia, Japan's Nikkei was down 0.2 percent, while South Korea's KOSPI was down 0.2 percent at 0040 GMT.
FACTORS TO WATCH:
* FIH Mobile Ltd, formerly known as Foxconn International Holdings Ltd (FIH), said on Monday it expects to post a profit for the first half of 2013 after a loss a year earlier.
* Hong Kong Exchanges and Clearing (HKEx) moved a step closer to offering renminbi clearing of metals contracts on Monday, signing an agreement with the London Metal Exchange (LME) and Bank of China.
* Indebted Spanish group Telefonica has agreed to sell its O2 Ireland mobile business for at least 780 million euros ($1 billion) in cash to Hutchison Whampoa's local unit 3 Ireland, it was announced on Monday.
* More than 400 Cambodian croupiers, drivers, cleaners and other workers have been sacked or suspended by the Hong Kong-listed owner of their casino after going on strike for higher pay and better working conditions, they said on Monday. Strikers demonstrated on Monday outside the NagaWorld hotel and casino complex, owned by Nagacorp Ltd.
* A $4.7 billion bid by the founders of ENRC to buy out the Kazakh miner has gained support from the board of top shareholder Kazakhmys , paving the way for the trio to take the company private after almost six turbulent years.
* Russian tycoon Oleg Deripaska's aluminium business, Rusal , plans to list its shares in Moscow, three years after its flotation on the Hong Kong market at nearly four times the current price.
* MMG Ltd said its intermediate controlling shareholder China Minmetals Non-ferrous Metals Co Ltd has increased its holding in the company to 73.12 percent from 72.4 percent.(Reporting by Clement Tan and Donny Kwok; Editing by Stephen Coates)