HSI +2.5%; Likely Futures-Related Buying – Phillip

0225 GMT [Dow Jones] HSI +2.5% at 13,197.90 with gains likely in part driven by futures-related buying ahead of November contract expiry tomorrow, says YK Chan of Phillip Asset Management; "too many people have turned bearish - that usually sets the stage for short-squeezing." Despite gains, volume modest at HK$4.90 billion so far. Supporting short-squeezing theory is strength in top 2 caps: China Mobile (0941.HK) +2.3% at HK$68.00, HSBC (0005.HK) +3.6% at HK$79.26 - contributing more than one-third of HSI's rise. If HSI gains are due to technical factors more than anything else, near-term upside may be limited; 20-day moving average near 13,500 likely near-term cap. (RLI)