Hong Kong stocks closed up for a

second straight session on Tuesday, spurred by gains on Wall

Street overnight, while higher gold and copper prices fuelled a

rally on commodity-related shares.

Chinese gold miners rose percent after gold prices inched up

on Tuesday. Jiangxi Copper (0358.HK), China's biggest integrated

copper producer, rose 4.12 percent after copper prices rose.

The benchmark Hang Seng Index .HSI was up 1.87 percent, or

382.46 points, at 20,811.53. Volume of trade rose to HK$56.3

billion ($7.3 billion) from HK$43.7 billion on Monday, the lowest

since Sept. 15.

The Hong Kong stock market just followed the rebound on Wall

Street, said Ben Kwong, chief operating officer at KGI Asia. At

this point, it's too early to say whether Hong Kong has already

riden out the correction trend.

Cement maker China Resources Cement (1313.HK) was flat at

HK$3.90 on its market debut, reflecting souring sentiment towards

initial public offerings. The stock opened down 4 percent

There has been a lack of interest in recent IPOs after

Metallurgical Corp. of China (1618.HK) fell below its IPO price,

said Belle Liang, head of research at Core Pacific-Yamaichi.

There are more IPOs coming in the fourth quarter, but we

have heard that companies are postponing their listings or

cutting their IPO prices. There is a lot of negative news

around.

Metallurgical Corp of China, a construction company that

helped build Beijing's Bird's Nest Olympic stadium, fell nearly

15 percent below its IPO price on its first day of trading on

Sept. 24, the worst trading debut in Hong Kong this year.

Gold miners soared after gold prices inched up towards $1,020

per ounce on Tuesday.

Zijin Mining rose 6.3 percent and Zhaojin Mining (1818.HK)

gained 7.4 percent. Rivals Real Gold Mining (0246.HK) advanced

6.44 percent and Lingbao Gold Co (3330.HK) rose 4.20 percent.

Other commodity stocks were also up. Aluminium Corporation of

China (2600.HK) rose 5.3 percent, while Angang Steel (0347.HK)

gained 5.32 percent.

The China Enterprises Index .HSCE of top locally listed

mainland Chinese companies was up 2.93 percent at 11,986.11, led

by a 7.7 percent gain in Harbin Power (1133.HK).

Cathay Pacific Airways (0293.HK) rose 6.06 percent. Hong

Kong's leading air carrier said it posted its best weekly

passenger load factor for 2009 last week.

Consumer goods exporter Li & Fung (0494.HK) rebounded,

gaining 3.35 percent. The stock closed down 4.7 percent on Monday

on concern that a rising jobless rate would further cut consumer

spending in the United States.

Handset maker Foxconn International Holdings (2038.HK) rose

4.51 percent. Bank of America Merrill Lynch upgraded the stock to

buy with a target price of HK$5.80 on improving earnings

outlook for 2010.

Hong Kong shares have fallen in six out of the last eight

sessions to a three-week low on Friday. Shares posted modest

gains on Monday as investors hunted for bargains.

Markets in China are closed for a public holiday. Trading

will resume on Oct. 9.

China