(Updates to midday)
* HSI jumps 2.7 pct, H-shares soar 3.4 pct
* CSI300, Shanghai Composite crawls up 0.5 pct
* Volumes in both mkts relatively muted vs last Friday
* Resources-related plays lead gains
HONG KONG, Sept 14 (Reuters) - Hong Kong shares soared to
their highest since early May on Friday, with the riskier
resources-related sectors leading gains after the U.S. Federal
Reserve announced a daring new stimulus plan to foster
investment and job creation.
Gains in mainland Chinese markets were comparatively muted,
dragged by weakness in the property sector after state-run media
reported that regulators were monitoring high prices seen in
land deals after a recent pickup in sales.
But Friday's rise in both markets was on modest midday
volumes compared with last Friday, when Chinese state media had
just announced the approval of more than 1 trillion yuan of
infrastructure projects.
The Hang Seng Index closed up 2.7 percent at 20,582.3
at midday, with technical resistance seen at around 20,674.5,
the lower end of a chart gap that opened up between May 4 and
May 7.
The China Enterprises Index of the top Chinese
listings in Hong Kong jumped 3.4 percent. The Shanghai Composite
Index and the CSI300 Index of the top Shanghai
and Shenzhen listings each rose 0.5 percent.
Both mainland indices are still marginally down on the week,
but Hong Kong's are set for a second weekly gain, each up about
4 percent.
"Investors should look to get the most from the rally from
here in high-beta stocks with low valuations," said Alan Lam,
Julius Baer's Greater China equity strategist. "H-shares should
outperform A-shares going into year's end." (High-beta stocks
tend to have higher highs and lower lows than the average.)
Shares of Chinese gold miners were among the top gainers as
gold prices rose to a six-month high. Zijin Mining
surged 11.4 percent in Hong Kong, while
rising 2.8 percent in Shanghai.
Jiangxi Copper jumped 7.2 percent in
Hong Kong and 2.9 percent in Shanghai as benchmark London and
Chinese contract copper prices rallied to their highest in up to
five months.
But JP Morgan strategists said in a weekly strategy note
that while the resources, petrochemicals and refining sectors
may benefit from bear market rallies on fast money, structural
problems remain.
Rating agency Standard & Poor's warned on Friday that the
credit risks for state-owned enterprises could worsen because
they already have high debt levels and weak profitability, both
of which would be exacerbated by the slowing Chinese economy.
SUN HUNG KAI RECOUPS LOSSES SINCE CHAIRMEN'S MARCH ARRESTS
Sun Hung Kai Properties rose 3.8 percent in heavy
volumes after posting late on Thursday earnings that narrowly
beat expectations on Thursday as strong rental growth drove the
company to record operational profits.
Gains on Friday have helped the shares recover losses
suffered in late March after the co-chairmen of the world's
second-largest property developer were arrested on corruption
charges.
China Life Insurance was up 4.1 percent
in Hong Kong and 2.2 percent in Shanghai after posting a 20
percent year-on-year increase in premium income in August, which
Barclays Capital analysts said was "likely well ahead of market
expectations."
Property shares on the mainland slipped on renewed fears of
that more curbs would be imposed on the sector after the
state-run China Securities Journal reported that regulators are
watching overly high prices in government land sales.
The two largest listed property developers in the A-share
market were the main hindrance on the CSI300. Shenzhen-listed
China Vanke sank 1.5 percent, while Shanghai-listed
Poly Real Estate shed 2.3 percent.
(Editing by Eric Meijer)