HK snaps 3-day losing streak, China stocks edge up

* CNOOC up 3.5 pct on partner Husky's gas discovery

* Esprit soars 5 pct on strong euro

* China First Heavy Industries makes weak Shanghai debut

By Sui-Lee Wee and Claire Zhang

HONG KONG/SHANGHAI, Feb 9 - Hong Kong shares rebounded 1.22 percent on Tuesday, snapping a three-day losing streak, as commodity-related stocks soared on higher prices, while a stronger euro lifted Europe-focused fashion retailer Esprit Holdings <0330.HK>.

The benchmark Hang Seng Index <.HSI>, which hit its lowest closing level since Sept. 2, 2009, on Monday, ended up 239.39 points at 19,790.28. The China Enterprises Index <.HSCE> of top locally listed mainland Chinese stocks was up 1.92 percent at 11,200.33.

But analysts said the bounce may be short-lived, adding that they do not foresee a sustained recovery in markets dominated by uncertainty over the eurozone debt crisis .

"The market will be trading in a range," said Alfred Chan, chief dealer at Cheer Pearl Investment. "We still haven't had clarity from Europe and the U.S. The nightmare is not off yet -- it's just prolonged."

Market turnover rose to HK$61.65 billion from Monday's HK$59.63 billion, its lowest level since Jan. 4.

"The market is directionless," said Jackson Wong, investment manager at Tanrich Securities. "Investors don't want to take big positions before the Lunar New Year. We're also waiting to see whether the eurozone will do anything to help Portugal, Ireland, Greece and Spain."

Esprit, which generated 85 percent of its turnover from Europe in the six months ended December last year, rose 5.08 percent on the back of a stronger euro, said William Lo, an analyst from Ample Finance Group. The euro gained on news that ECB President Jean-Claude Trichet is leaving a meeting of central bankers in Sydney early to attend a European Council meeting, prompting talk of a plan for Greece. [ID:nLDE6180CL].

China's top offshore oil producer CNOOC rose 3.51 percent after its partner Husky Energy Inc said on Monday that it had made another big gas find off the coast of China, its third major discovery in the region.

Under the production-sharing contract, CNOOC has the right to take up to a 51 percent working interest in the block.

China Zhongwang Holdings fell 27.26 percent, even after the company said it had concluded that there were no deficiencies in its sales transactions and tax documentation following an independent review, clarifying issues surrounding the accuracy of its listing documents published last year. [ID:nTOE618009].

Jiangxi Copper rose 3.58 percent after copper rose 1 percent in London and Shanghai on Tuesday. [ID:nSGE61805X].

SHANGHAI RISES

China's key stock index edged up 0.47 percent on Tuesday, with financial shares mostly firmer although a major new listing by China First Heavy Industries <601106.SS> continued a string of disappointing market debuts while turnover shrank to an 11-month low.

The Shanghai Composite Index <.SSEC> ended at 2,948.842 points, after moving within a narrow range.

Gaining Shanghai A shares outnumbered losers by 532 to 353, while turnover slipped to less than 68 billion yuan ($9.96 billion) from Monday's 73 billion yuan.

Activity is expected to thin out in the run-up to the one-week holiday for the Lunar New Year, which begins on Feb. 14.

"Investors are still reluctant to trade ahead of the week-long holiday, although the market rebounded after its earlier sell-off," said Wu Nan, analyst at Xiangcai Securities. "The index is still in a consolidation phase."

The index is down 10 percent from the start of the year, weighed down by an official clampdown on credit and rising share supplies, although it has bounced lightly from a four-month low hit last week.

China First Heavy, the most actively traded Shanghai stock, sagged 3.16 percent to 5.52 yuan on its first day of trade in Shanghai after raising $1.67 billion in China's biggest IPO this year, as investors remained wary over a full pipeline of new listings. [ID:nTOE61702B]

IPOs are expected to continue bringing additional share supplies to the market despite First Heavy's fall below its IPO price, said Xu Yinhui, senior analyst at Guotai Junan Securities.

Three smaller issues made mixed debuts in Shenzhen on Tuesday. Dalian Kemian Wood Industry <002354.SZ> gained 46 percent to 17.95 yuan, Shandong Xingmin Wheel <002355.SZ> edged up 0.69 percent to 14.60 yuan and Shenzhen Haoningda Meters <002356.SZ> sank 3.32 percent to 35.29 yuan.

Expressway companies outperformed, with investors expecting heavy traffic around the holiday to lift the sector. Guangdong Provincial Expressway Development <000429.SZ> climbed 5.88 percent to 5.94 yuan, while Shenzhen Expressway <600548.SS> advanced 2.58 percent to 6.37 yuan and Shandong Expressway <600350.SS> jumped 7.47 percent to 5.90 yuan.