HK, China shares gain; gold, metal stocks up

* Hong Kong stocks gain on bargain hunting

* Shanghai shares rise to almost three-month high

* Gold counters rise on higher gold prices
(Updates to close)

By Jun Ebias and Claire Zhang

HONG KONG/SHANGHAI, Nov 4 (Reuters) - Hong Kong stocks closed
up 1.76 percent in an anaemic session on Wednesday, as investors
snapped yo banks and gold counters, while Shanghai closed close
to a three-month high, led by metals shares.

China's key stock index rose 0.46 percent, continuing a rally
fuelled by optimism over economic recovery and a rosy outlook for
corporate earnings.

In Hong Kong, the benchmark Hang Seng Index .HSI ended up
374.71 points at 21,614.77, rebounding from a 2.36 percent loss
in the previous two sessions.

But turnover fell to a three-week low of HK$60.06 billion
($7.7 billion), down from Tuesday's HK$61.01 billion, reflecting
the market's wariness ahead of the outcome of a U.S. Federal
Reserve meeting later on Wednesday, and Friday's U.S payrolls
data.

"The market is still quite cautious. Most players are taking
profit at higher levels," said Kenny Tang, research head at
Redford Securities. "The market will focus on the FOMC meeting
and key economic data due in the U.S this week."

While the Fed is expected to leave rates unchanged, the
market wants to hear what the policymakers say about the economic
outlook. [.N]

Chinese gold miners rose as gold prices settled near record
highs. Zijin Mining (2899.HK: Quote, Profile, Research) was up 5.66 percent, and Realgold
Mining (0246.HK: Quote, Profile, Research) was 3.29 percent higher. [ID:nT126170]

In Shanghai, Shandong Gold (600547.SS: Quote, Profile, Research) was up 2.11 percent at
69.79 yuan, while Zijin Mining (601899.SS: Quote, Profile, Research) rose 1.5 percent to
9.49 yuan.

Asia Resources Holdings (0899.HK: Quote, Profile, Research) gained 1.82 percent. The
company said it would buy a 55 percent stake in a mining and iron
ore trading venture in Indonesia's East Java province for
HK$577.5 million ($74.52 million).

Consumer goods exporter Li & Fung (0494.HK: Quote, Profile, Research) advanced 2.82
percent. HSBC raised its target price on the stock to HK$35 from
HK$31 and its rating to "neutral" from "underweight".

Oil producer PetroChina (0857.HK: Quote, Profile, Research) was up 3.55 percent. Credit
Suisse raised its rating on the stock to "neutral" with a target
price of HK$10.10, as PetroChina is expected to benefit before
other oil companies from gas price reforms in China.

Banks rebounded, with China Construction Bank (0939.HK: Quote, Profile, Research) up
2.42 percent and Bank of China (3988.HK: Quote, Profile, Research) 2.73 percent higher.

The China Enterprise Index .HSCE of top locally listed
mainland Chinese stocks rose 2.64 percent to 12,830.15.

China Unicom (0762.HK: Quote, Profile, Research) rose 2.55 percent after reporting that
it signed up more than 1 million 3G subscribers. [ID:nPEK156986]

Dongfeng Motor Group (0489.HK: Quote, Profile, Research) was up 12.27 percent after
announcing a 4.63 billion yuan profit for the first nine months.

Bucking the trend, fashion retailer Trinity (0891.HK: Quote, Profile, Research) fell
4.47 percent on profit taking. The stock soared 49 percent on its
trading debut on Tuesday.

SHANGHAI GAINS

The Shanghai Composite Index .SSEC finished at 3,128.537
points, its highest close since Aug. 13, having risen 4.4 percent
so far this week.

Gaining Shanghai A shares outnumbered losers by 557 to 311 as
turnover remained active at 164 billion yuan ($24 billion),
although lower than Tuesday's 170 billion yuan.

Propelled by a faster-than-expected economic recovery,
China's nearly 1,700 listed companies posted a surprising
26-percent year-on-year jump in third-quarter earnings in the
latest earnings season, which ended over the weekend.

The World Bank on Wednesday raised its growth forecast for
China this year and projected a faster rise in 2010, but said
Beijing did not need to embark on major policy tightening at this
stage. [ID:nPEK132888]

"The market has nearly established a medium-term uptrend,"
said a manager at a mutual fund in Shenzhen, who could not be
quoted by name as he was not authorised to talk to the media.
"But the rally may meet resistence from time to time, due in part
to looming jitters over a possible early exit from the
government's economic stimulus policy."

Chen Huiqin, senior analyst at Huatai Securities in Nanjing,
added: "The index could rise gradually amid volatility, with
occasional consolidation."

Near-term resistance may lurk at the psychologically key
3,150 point mark, Chen said. The 14-day Relative Strength Index
has already reached 61, approaching the overbought mark of 70.
Shares that may benefit from plans for a Shanghai Disney
theme park or that own land in the Pudong area where it will be
built bucked the market's uptrend on Wednesday, hit by
profit-taking after the long-awaited deal received official
approval from the central government.

Rumours that official approval was imminent had lifted the
shares in recent days.

Lujiazui Finance (600663.SS: Quote, Profile, Research) closed down 1.92 percent at
29.17 yuan, after surging 31 percent from the beginning of
October to Tuesday's close.

Walt Disney Co (DIS.N: Quote, Profile, Research) and the Shanghai government said on
Wednesday that they were in detailed talks on a deal to build a
theme park in Shanghai after getting the nod from the central
government. [ID:nN03523281]
(Editing by Chris Lewis)