HK shares off highs as resources weigh;HSBC shines

* Investors nervous ahead of Wall Street, Citi earnings * CNOOC tumbles as oil stays near $130 per barrel * HSBC extends gains, up 6.4 pct over two sessions

(Updates to close)

By Parvathy Ullatil

HONG KONG, July 18 (Reuters) - Hong Kong shares ended Friday's volatile session 0.6 percent higher, as gains in global lender HSBC Holdings (0005.HK: Quote, Profile, Research, Stock Buzz) and local blue chips offset losses in resource counters.

Europe's largest bank, HSBC, climbed 2.6 percent, leading gainers on the main index after U.S. peer JP Morgan (JPM.N: Quote, Profile, Research, Stock Buzz) surprised investors with a smaller-than-expected profit decline for the first half. [ID:nN17472235] The stock advanced 6.4 percent in the past two sessions.

But the main index closed off highs as investors focused on expected losses on Wall Street tonight following disappointing earnings from three companies.

U.S. markets are expected to take a beating after Google (GOOG.O: Quote, Profile, Research, Stock Buzz), Microsoft MSFT.N and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz), which announced their results after the U.S. stock market closed on Thursday, missed Wall Street estimates. Investors are also anxious ahead of Citigroup's (C.N: Quote, Profile, Research, Stock Buzz) earnings tonight.

Offshore oil producer CNOOC (0883.HK: Quote, Profile, Research, Stock Buzz) slid 2.8 percent after oil prices rose the most in at least three years this week.

The Hang Seng Index .HSI closed 139.47 points higher at 21,874.19, after opening 1.3 percent higher. The index lost 1.4 percent over the week.