UPDATE 2-U.S. DOT approves Continental joining alliance

* DOT approves Continental Airlines joining Star Alliance

* Antitrust immunity limited on some Canada, China routes

* Continental shares up 6.6 percent; UAL shares down (Recasts; adds CEO and analyst comments, background; updates shares)

CHICAGO, July 10 (Reuters) - The Obama administration on Friday approved a bid by Continental Airlines Inc (CAL.N) to join UAL Corp's (UAUA.O) United Airlines and other carriers in the global Star Alliance.

The final U.S. Transportation Department order, which gave the carriers limited immunity from antitrust law, permits carriers to share pricing, scheduling and other information within the alliance.

Opponents of the immunity had argued that allowing Continental into the alliance would dampen competition and harm consumers with higher fares.

UAL and Continental, however, cheered the government decision, which enables carriers to build international networks without running afoul of U.S. law that discourages mergers between domestic and overseas airlines.

"United, Continental and the Star Alliance carriers will be able to compete more effectively in an increasingly global air travel market," UAL Chief Executive Glenn Tilton said in a statement.

"It ensures global competition with other antitrust immunized alliances while encouraging the retention and growth of open skies between the U.S. and other nations," said Continental Chief Executive Larry Kellner in a statement.