HK stocks up 2 pct, China quake impact limited

(Updates to Tuesday close, details)

By Judy Hua

HONG KONG, May 13 (Reuters) - Hong Kong stocks rose nearly 2
percent on Tuesday, with heavyweights China Mobile (0941.HK: Quote, Profile, Research) and
HSBC (0005.HK: Quote, Profile, Research) leading the gains, while investors expected the
market impact of an earthquake in southwest China to be limited.

Estimates put the death toll at 10,000 and many more are
feared dead after China's worst earthquake in three decades
hammered Sichuan province in the south west. [ID:nL1281973]

Some investors were also betting that Beijing would not
further tighten its monetary policy after the massive quake,
following its move on Monday to raise the amount that lenders
must hold in reserve for the fourth time this year.

"The market has some technical rebound as the Japanese market
is doing quite well in the afternoon. But further upside from
here is difficult unless the U.S. market continue to rebound,"
said Andrew To, sales director of Tai Fook Securities.

"After China's central bank raised banks' reserve requirement
ratios, investors assumed that the next step might be raising
private lending rates. But this may have to be set aside for a
while due the the earthquake."

To said investors were choosing fundamentally sound and more
defensive stocks, such as infrastracture and financial-related
firms, under the current situation.

The benchmark Hang Seng Index closed up 1.95 percent at
25,552.77.

The China Enterprises Index .HSCE of Hong Kong-listed
mainland companies, or H shares, rose 2.31 percent to end at
13,997.91.

Mainboard turnover rose to HK$80.84 billion ($10.4 billion)
from HK$77.27 billion on Friday before the market closed on
Monday for a public holiday.

China Mobile jumped 3 percent to HK$133.00. HSBC Holdings
(0005.HK: Quote, Profile, Research) rose nearly 2 percent after it on Monday announced
profit in the first quarter that beat year ago numbers as growth
in Asia helped counter some $5 billion in hits from bad debts on
U.S. home loans and asset writedowns. HSBC was the day's most
actively traded stock.

PICC Property and Casualty Co Ltd (2328.HK: Quote, Profile, Research), China's largest
non-life underwriter, fell 3.2 percent to HK$7.00 after the
earthquake, but China Life (2628.HK: Quote, Profile, Research) rose 1.5 percent, buoyed by
its firm financial fundamentals, even though it expects claims
from the earthquake to far exceed those for freak snowstorms
early this year.

Taiwan-based snack maker Want Want China Holdings (0151.HK: Quote, Profile, Research)
fell 2 percent after it said four of its production plants in
Chengdu in Sichuan province would suspend production for a week
pending safety inspections.

The country's top cement maker Anhui Conch (0914.HK: Quote, Profile, Research) jumped
5.3 percent to HK$65.80 on speculation of increased demand for
building materials in the post-quake reconstruction effort.

Companies based in Sichuan province or nearby Chongqing city,
including Sichuan Expressway (0107.HK: Quote, Profile, Research), Dongfang Electrical Corp
(1072.HK: Quote, Profile, Research) and Chongqing Iron & Steel Co Ltd (1053.HK: Quote, Profile, Research), have been
suspended from trading after the earthquake.

Shares in Aluminum Corp of China Ltd (2600.HK: Quote, Profile, Research), China's top
aluminium firm rose 6.3 percent and online services provider
Tencent (0700.HK: Quote, Profile, Research) soared 12 percent before ending up 8.8 percent
after news that they will join Hong Kong's blue-chip index.
($1=7.8 Hong Kong Dollar)
(Reporting by Judy Hua; Editing by Keiron Henderson)