HK shares seen up on ICBC's positive earnings

HONG KONG, July 4 (Reuters) - Hong Kong shares are seen moving higher on Friday, after conceding nearly 4 percent in the previous two sessions, with a positive earnings announcement from China's biggest bank helping financial stocks recover.

Industrial and Commercial Bank of China (1398.HK: Quote, Profile, Research) said on Thursday its first-half net profit grew by more than 50 percent as income from both lending and fees from services boomed. [ID:nHKG337025]

"The Hong Kong market is grossly oversold, coming within 700 points of the March low on Thursday, We should see some technical rebound at this point," said Andrew To, sales director with Tai Fook Securities.

"ICBC's positive earnings should help H-shares but oil prices hit a high yesterday, which will again cap gains."

Investors are likely to be less cautious ahead of the July 4th holiday in the U.S. today.

The Dow rose on Thursday, a day after the blue-chip average entered a bear market, on relief payrolls data was not as weak as some had feared and with another record oil price boosting energy shares.

Crude oil prices crossed the $145 per barrel mark on Thursday on bets that a weak dollar, sliding U.S. inventories and tension between Isreal and OPEC member Iran would push prices to $150 soon.

The Hang Seng Index .HSI closed 2.1 percent lower on Thursday at a 15-week low, as financial stocks and insurers plunged on fears of further credit tightening in China and sentiment weakened as oil prices marched on. STOCKS TO WATCH

*Mainland banks are expected to recover from Thursday's sharp losses after ICBC's earnings announcement which will quell fears of declining profitability in Chinese lenders amid aggressive credit tightening.