Hong Kong shares set for flat to lower open

HONG KONG, Oct 11 (Reuters) - Hong Kong shares are set toopen flat to slightly lower on Thursday, tracking weakness onWall Street after U.S. corporate bellwethers warned about slowerglobal demand especially ebbing growth in China, the world'ssecond-largest economy.

The Hang Seng Index eased 0.1 percent on Wednesdayalthough healthy gains in locally listed Chinese shares ,which ended up 0.7 percent, limited losses.

Warnings from oil producer Chevron Corp aboutthird-quarter earnings and a gloomy forecast for aluminum demandfrom Alcoa Inc sent the S&P 500 to its fourthstraight weekly loss overnight.

Meanwhile in Asia, Japan's Nikkei was down 0.3percent while South Korea's KOSPI was 0.1 percent lowerby 0035 GMT.


* ING said it has agreed to sell its Malaysianinsurance unit to pan-Asian insurer AIA Group Ltd for1.3 billion euros ($1.68 billion) in cash, kicking off the Dutchgroup's long-awaited divestment of Asian assets.

* AIA Group Ltd recorded a 22 percent increase invalue of new business to $300 million for the third quarterended Aug. 31 with margin up 11 percentage points to 42.6percent. For statement clicks

* China's Lenovo Group Ltd edged out SiliconValley icon Hewlett-Packard Co to become the world's No.1 PC maker in the third quarter, according to new data releasedby research house Gartner on Wednesday.

* Baoshan Iron and Steel , China's largest listedsteelmaker, will keep prices of its main products unchanged fora second straight month in November, surprising the market thatwas expecting a hike given recent gains in spot prices.

* The European Commission has delayed a trade case againsttwo Chinese telecom equipment makers, Huawei Technologies Co Ltd

and ZTE Corp , also under scrutinyin the United States, easing tensions between the European Unionand its second-biggest trading partner.

(Reporting by Vikram Subhedar; Editing by Jacqueline Wong)

((vikram.subhedar@thomsonreuters.com)(+852 28436975))