HK shares up 0.7 pct on Wall St gains; Gold miners gain

* Cathay Pacific gains as passenger volume rises

* Chinese gold miners rally on higher gold prices

* China Resources Cement slips on debut
(Updates to midday)

By Jun Ebias

HONG KONG, Oct 6 (Reuters) - Hong Kong stocks rose 0.68
percent on Tuesday, tracking gains on Wall Street, while Chinese
gold miners including Zijin Mining (2899.HK) rallied after gold
prices inched up.

But cement maker China Resources Cement (1313.HK) fell to
HK$3.88 on its market debut, versus an initial public offering
price of HK$3.90. The stock opened down 4 percent, reflecting
souring sentiment towards IPOs. [ID:nHKF080448]

"People lack interest in recent IPOs after Metalurgical
Corp. of China (1618.HK) fell below its IPO price," said Belle
Liang, head of research at Core Pacific-Yamaichi. "There are
more IPOs coming in the fourth quarter, but we have heard that
companies are postponing their listings or cutting their IPO
prices. There is a lot of negative news around."

Mettalurgical Corp of China, a construction company that
helped build Beijing's "Bird's Nest" Olympic stadium, fell
nearly 15 percent below its IPO price on its first day of
trading on Sept. 24, the worst trading debut in Hong Kong this
year.

At the midday break on Tuesday, the benchmark Hang Seng
Index .HSI was up 139.70 points at 20,568.77. Turnover was
HK$30 billion ($3.9 billion), versus HK$23.2 billion on Monday.

Gains were capped on caution ahead of the earnings
announcement in the U.S. this week, analysts said.

"U.S. markets rebounded last night; that will be the main
driver for Hong Kong stocks," said Conita Hung, head of equity
research at Delta Asia Financial Group. "But I don't see a sharp
gain today, mainly because China is still closed. There is also
some caution ahead of U.S. earnings announcements."

Gold miners soared after gold prices inched up towards
$1,020 per ounce on Tuesday. [ID:nT9346]

Zijin Mining rose 4.96 percent and Zhaojin Mining (1818.HK)
gained 5.14 percent. Rivals Real Gold Mining (0246.HK) advanced
6.44 percent and Lingbao Gold Mining (3330.HK) rose 3.15
percent.

Prospects for gold remained upbeat, with Bank of America
Merrill Lynch forecasting that prices will hit $1,500 per ounce
in 2011, when oil prices move back above $100 per barrel.
[ID:nL541967]

The China Enterprises Index .HSCE of top locally listed
mainland Chinese companies was up 1.5 percent at 11,819.92, led
by a 6.12 percent gain in Harbin Power (1133.HK).

Cathay Pacific Airways (0293.HK) rose 3.63 percent. Hong
Kong's leading air carrier said it posted its best weekly
passenger load factor for 2009 last week. [ID:nSEO107656]

Consumer goods exporter Li & Fung (0494.HK) rebounded,
gaining 3.52 percent. The stock closed down 4.7 percent on
Monday on concern that rising jobless rate would further cut
consumer spending in the United States.

Handset maker Foxconn International Holdings (2038.HK) rose
3.14 percent. Bank of America Merrill Lynch upgraded the stock
to "buy" with a target price of HK$5.80 on improving earnings
outlook for 2010.

Hong Kong shares have fallen in six out of the last eight
sessions to a three-week low on Friday. Shares posted modest
gains on Monday as investors hunted for bargains.

Markets in China are closed for a public holiday. Trading
will resume on Oct. 9.
(Editing by Chris Lewis)