HK, Shanghai shares up on weak U.S. dlr, earnings

* Shanghai shares lead with 2.1 percent gain

* Hang Seng index advances 1.4 percent

* Powerlong up 5.1 pct vs IPO, off high of 14 pct gain
(Updates to midday)

HONG KONG/SHANGHAI, Oct 14 (Reuters) - Shanghai stocks took
the lead, pulling the Hong Kong bourse higher on Wednesday
morning, boosting expectations for improved Chinese economic
data and more gains to be made on the U.S. dollar's weakness.

"The short-term weakness in the U.S. dollar continues to
encourage liquidity inflows into Asian equity markets, and Hong
Kong benefits from that," said Jaseper Tsang, head of research
at CSC (Hong Kong) of the Capital Securities Group.

"Some hedge fund managers I know have a bearish outlook on
the U.S. dollar even for the long term," he added.

Expectations of better economic data and third-quarter
corporate earnings provided an additional boost to the markets.

The Hong Kong market largely ignored concerns over a
possible property bubble as Chief Executive Donald Tsang said
the government was ready to deal with such a situation. The
property sub-index was up nearly 1 percent at the end of the
session.
The benchmark Hang Seng Index .HSI rose 1.36 percent to
21,760.29. Mainboard turnover was HK$33.9 billion ($4.4
billion), little changed from midday Tuesday's HK$33.6 billion.

The China Enterprises Index .HSCE of top locally listed
mainland Chinese stocks was up 1.57 percent at 12,704.50.

Powerlong Real Estate Holdings (1238.HK) rallied more than
14 percent before slowing its advance to 5.1 percent at HK$2.89
on its debut, against its IPO price of HK$2.75. The Fujian-based
company had originally aimed to raise HK$5 billion ($645.2
million) from the offering.

PetroChina (0857.HK) rose 4.65 percent, while CNOOC
(0883.HK) gained 2.61 percent to HK$11.80 after U.S. crude
futures rose for a fifth day towards their 2009 high of $75 per
barrel, helped by a weak dollar.

CNOOC, China's leading liquefied natural gas receiving
terminal developer, was also helped by an announcement that the
company would soon receive its first Qatar LNG cargo under a
long-term supply deal. [ID:nPEK367988]
China Resources (0291.HK) climbed 3.18 percent as commodity
and export-oriented stocks benefitted from the U.S. dollar's
weakness and record gold prices.

Tencent (0700.HK), China's largest instant messaging
platform operator, advanced 4.62 percent. The stock has been
upgraded to "buy" from "hold" by Citi because of expected growth
in its resilient client base and defensive nature.

SHANGHAI

China's key stock index rose 2.13 percent on Wednesday, led
by property shares on the back of strong earnings, while energy
shares were bolstered by a firmer oil price, with upbeat China
trade data boosting sentiment as the index challenged a key
resistance level.

The Shanghai Composite Index .SSEC ended the morning at
2,998.713 points after rising as high as 3,000.792, reaching the
psychologically important 3,000-point level for the first time
in nearly a month.

Turnover in Shanghai A shares rose to a brisk 73 billion
yuan ($11 billion) from Tuesday morning's thin 46 billion yuan,
while gaining stocks overwhelmed losers by 862 to 70.

"Upbeat trade data pointed to a better picture for the
economic recovery while firmer earnings in the third quarter are
boosting investor confidence," said Chen Jinren, senior analyst
at Huatai Securities in Nanjing.

China's exports fell 15.2 percent in September from a year
earlier, while imports fell just 3.5 percent, Xinhua news agency
said on Wednesday. The declines were much less than expected.
[ID:nPEK367690]

"The index has moved into an uptrend despite heavy new share
supplies, but it may consolidate for a couple of days around
stiff resistance at 3,000," Chen said.

A steady stream of IPOs and other new share supplies have
damped sentiment in the market, sending the index down 6 percent
in the third quarter in its worst quarterly performance this
year.

In the property sector, China State Construction and
Engineering (601668.SS), the most actively traded share in
Shanghai, jumped its 10 percent daily limit to 5.25 yuan after
saying its sales hit 37 billion yuan in the first nine months,
up 81 percent from a year earlier.

Gemdale (600383.SS) climbed 6.56 percent to 14.78 yuan after
saying its sales reached 15 billion yuan in the first nine
months of the year, up 91 percent from the same period last
year.

Energy shares gained as oil surged for a fifth day towards
its 2009 high of $75 per barrel. [ID:nSIN539970]

China Shenhua Energy (601088.SS) jumped 3.87 percent to
34.34 yuan. Sinopec (600028.SS) advanced 3.83 percent to 12.19
yuan while PetroChina (601857.SS), the most heavily weighted
share in the index, was up 3.12 percent at 13.53 yuan.

CITIC Securities said in a recent research note that the
market could gain strength in the fourth quarter, as earnings at
listed companies are expected to improve in the fourth quarter
and the first quarter of next year. An export recovery and
accelerated property sector investment could also fuel stock
market gains.
(Editing by Chris Lewis)