HK shares rebound from 3-day rout; CNOOC gains

* Hong Kong shares snap three-day 10 percent drop

* Resources rise after oil climbed the previous day

* Chinese developers gain on rate cut optimism (Updates to close)

By Jun Ebias

HONG KONG, Nov 14 (Reuters) - Hong Kong shares rose 2.4 percent on Friday, snapping a three-day fall, buoyed by resource shares such as CNOOC (0883.HK: Quote, Profile, Research, Stock Buzz), while China Overseas Land (0688.HK: Quote, Profile, Research, Stock Buzz) rose on hopes of further rate cuts on the mainland.

China Overseas Land, the nation's top developer, gained 3.8 percent, while smaller rival China Resources Land (1109.HK: Quote, Profile, Research, Stock Buzz) rose 2.3 percent.

"The good news is, we have a new catalyst from China. We are likely to see another rate cut this weekend or next week," said Jackson Wong, investment manager at Tanrich Securities.

Hong Kong developer and port operator Wharf Holdings (0004.HK: Quote, Profile, Research, Stock Buzz) surged 9 percent after Merrill Lynch upgraded the stock to neutral from underperform, saying it was trading at a 60 percent discount to its revised 2009 net asset value forecast.

Asian markets rallied on Friday as investors went on the prowl for beaten down stocks, temporarily setting aside the grim outlook for the global economy.

Japan's Nikkei average .N225 closed up 2.7 percent, ending a three-day losing streak.

"Hong Kong got sold down very fast in the last three days, so we should have a very good day today," said Howard Gorges, vice chairman at South China Securities. "Asian markets are getting a bit mad today."

The benhmark Hang Seng Index .HSI closed 321.31 points higher at 13,542.66, snapping a three-day 10.3 percent drop. For the week, the index fell 5 percent.

China Mobile, Asia's biggest cellphone network, led gainers with a 3.7 percent rise.

A total of HK$44.7 billion ($5.7 billion) changed hands, down from HK$51.8 bilion on Thursday, on caution ahead of the release of U.S. October retail sales and Hong Kong's third quarter gross domestic product data.

The Hong Kong data, which came out after the market closed, showed the economy tipped into recession in the third quarter as GDP shrank a seasonally adjusted 0.5 percent due to the impact of the global financial crisis. Please click on [ID:HKU001109] for story.

Resource stocks gained after oil prices climbed more than 4 percent overnight on worries OPEC may further cut production this month.

Oil and gas firm, PetroChina (0857.HK: Quote, Profile, Research, Stock Buzz), rose 4.1 percent, while oil producer CNOOC (0883.HK: Quote, Profile, Research, Stock Buzz) gained 4.4 percent.

Alumina maker Chalco (2600.HK: Quote, Profile, Research, Stock Buzz) rose 3 percent and steel producer Maanshan Iron and Steel (0323.HK: Quote, Profile, Research, Stock Buzz) rose 2.6 percent.

But CITIC Pacific (0267.HK: Quote, Profile, Research, Stock Buzz) fell 7.1 percent, reversing earlier gains, as Goldman Sachs and other brokerages lowered their price targets on the stock amid earnings concerns.

The China Enterprise Index .HSCE of top locally listed mainland Chinese companies rose 3.3 percent to 7,021.64, led by a 5.8 percent gain in China Life Insurance (2628.HK: Quote, Profile, Research, Stock Buzz).

Internet firm Tencent Holdings (0700.HK: Quote, Profile, Research, Stock Buzz) jumped 6.3 percent after it said this week that its third-quarter profit rose 73 percent.

Cathay Pacific Airways (0293.HK: Quote, Profile, Research, Stock Buzz) rose 3.6 percent. The airline may delay completion of its HK$4.8 billion third cargo terminal in Hong Kong for about a year due to the economic crisis, the South China Morning Post said.

Huadian Power (1071.HK: Quote, Profile, Research, Stock Buzz) surged 13 percent. The company said on Thursday it would seek shareholders' approval for its plan to issue up to 3 billion yuan worth of debt due up to 10 years.

(With additional reporting by Donny Kwok; Editing by Jacqueline Wong)