ADR Report-Banks gain on US regulatory plan; HSBC higher

By Ellis Mnyandu

NEW YORK, March 31 (Reuters) - U.S.-listed shares of overseas companies rose on Monday as investors snapped up financial stocks on hopes that a regulatory overhaul unveiled by U.S. Treasury Secretary Henry Paulson will help ease financial market turmoil.

The Bank of New York's index of leading American Depositary Receipts edged up 0.5 percent while the 30-share Dow Jones industrial average .DJI gained 90.21 points, or 0.74 percent, to 12,306.61.

The regulatory blueprint proposes eventually vesting new powers in the Federal Reserve as a "market stability regulator" -- effectively formalizing a role the U.S. central bank started recently when it expanded the list of financial firms which can borrow directly from it.

U.S.-traded shares of Britain's Barclays Plc (BARC.L: Quote, Profile, Research) (BCS.N: Quote, Profile, Research) rose 2.3 percent to $36.38 on the New York Stock Exchange, while those of Germany's Deutsche Bank (DBKGn.DE: Quote, Profile, Research)(DB.N: Quote, Profile, Research) climbed 1.4 percent tot $114.28.

Shares of HSBC Holdings Plc (HSBA.L: Quote, Profile, Research) (HBC.N: Quote, Profile, Research), Europe's largest lender, added 2.1 percent to $82.85 on the NYSE. HSBC announced the launch of a private banking services in China.

The Bank of New York's index of leading European ADRs gained 0.9 percent.

Even so, stocks in Europe ended lower on Monday, capping their worst quarterly performance in more than five years, as persistent worry about the credit crunch weighed on bank stocks and a broker downgrade dragged down Vodafone (VOD.L: Quote, Profile, Research).

U.S.-traded shares of Vodafone VOD.N slid 4.8 percent to $29.65 on the NYSE.