HK shares end up 1.6 pct; energy,shipping stocks soar

* Shares volatile on worries over Wall St performance

* CNOOC jumps 6.0 percent on higher oil prices

* Chinese financials extend rally on aid package (Updates to close)

By Parvathy Ullatil

HONG KONG, Sept 22 (Reuters) - Hong Kong shares added 1.6 percent on Monday after surging 9.6 percent in the previous session, as investors cheered government intervention in the U.S. and Chinese markets, but stocks ended below the day's highs.

Energy shares outperformed with Asia's largest oil & gas producer PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz) gaining 5.1 percent, and offshore oil producer CNOOC (0883.HK: Quote, Profile, Research, Stock Buzz) surged 6 percent after crude oil inched up after posting its biggest three-day rally in a decade last week.

Other commodity-linked stocks also enjoyed strong gains with China Cosco (1919.HK: Quote, Profile, Research, Stock Buzz), the nation's largest shipping conglomerate, soaring 11.7 percent and China Shipping Development (1138.HK: Quote, Profile, Research, Stock Buzz) pole-vaulting 15.3 percent following a four-day rally on the global freight index .BADI.

"Sentiment has improved tremendously since last week and we already have some rumours swirling about another round of market boosting, policy easing measures from China fairly soon," said Peter Pak, vice president with BOCI Research.

The benchmark Hang Seng Index .HSI closed up 304.5 points at 19,632.2 in a volatile session which saw the index drop to 19,137.7 soon after opening 2.8 percent higher.

The index posted its biggest one-day jump in nine months on Friday, soaring 9.6 percent.

U.S. stock futures edged lower on Monday, suggesting stocks may cut some of Friday's massive gains as investors remain uncertain on the working of the proposed $700 billion bank bailout and its long-term implications. [ID:nN21510221]

"Even with the $700 billion bailout package, there are worries that the U.S. government may not be able to prevent a likely recession in the economy," said Castor Pang, strategist with Sun Hung Kai Financial.

On Monday, mainboard turnover fell to HK$91.6 billion ($11.7 billion) from HK$124.6 billion on Friday.

The China Enterprises Index .HSCE of top locally listed mainland Chinese firms rose 2.5 percent.

Chinese financials extended Friday's sharp rally after the mainland government said it would rope in sovereign wealth funds to buy shares in listed companies, including its leading banks, and stabilise the mainland markets.

Top lender ICBC (1398.HK: Quote, Profile, Research, Stock Buzz) gained 3.9 percent while smaller rival China Construction Bank (0939.HK: Quote, Profile, Research, Stock Buzz) climbed 0.6 percent.

China's largest insurer China Life (2628.HK: Quote, Profile, Research, Stock Buzz) advanced 4.5 percent tracking the 7.8 percent surge on the Shanghai bourse .SSEC where it holds substantial investments. Ping An Insurance (2318.HK: Quote, Profile, Research, Stock Buzz) followed suit with a 6.2 percent jump.

China Citic Bank bucked the trend among mainland financial companies to drop 5.6 percent on last week's reports that its parent CITIC Group was in deal discussions with Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz).

Mainland property companies rose sharply on hopes more relaxed economic policies in China would stall sliding property prices in major cities.

China Overseas Land Investment (0688.HK: Quote, Profile, Research, Stock Buzz) rallied 6.7 percent while Guangzhou R&F Properties (2777.HK: Quote, Profile, Research, Stock Buzz) soared 10.3 percent.

Sportswear brand Li Ning <>

"We believe that his (Tan's) resignation may increase some uncertainty. Especially given the current volatile market environment and intensifying post-Olympic competition among sporting brands, this may put further short-term negative pressure on the stock," said Caroline Li, an analyst with Goldman Sachs. (Reporting by Parvathy Ullatil; Editing by Anshuman Daga)