HONG Kong's benchmark index rose for the first time in three days as investors took advantage of recent declines to buy stocks. China Netcom Group Corp rebounded from a two-day 16-percent slump.

China Petroleum & Chemical Corp, Asia's largest refiner, climbed after oil prices fell to a one-month low, while offshore crude producer CNOOC Ltd dropped. Cosco Pacific Ltd retreated on concern it may sell shares to help finance a contract to run facilities in Greece's biggest port, according to Bloomberg News.

The Hang Seng Index added 132.04, or 0.6 percent, to close at 24,255.29, halting a two-day 2.9-percent drop to a seven-week low. The gauge, which had dropped as much as 0.5 percent in the morning session, is down 23 percent from its October 30 record on concern a global credit crunch will slow economic growth and dent corporate earnings.

Markets including Hong Kong "have been corrected and they did break out on the upside," said Graham Bibby, chief executive officer of Richmond Asset Management, which manages US$350 million. "They're back at support levels, which is why we'll get a bit of strength from here."

Stocks are getting "cheap" and "the natural progression" is for the Hang Seng Index to rise to 32,000 by the end of the year, Bibby said.

More Gainers

Almost two stocks rose for each that dropped on the 43-member Hang Seng Index. June futures added 1.4 percent to 24,230. The Hang Seng China Enterprises Index, which tracks so-called H shares of Chinese mainland companies, lost 0.2 percent to 13,355.04.

Netcom, the smaller of the country's two fixed-line telephone operators, climbed 2 percent to HK$23.25 (US$2.98).

China Petroleum, known as Sinopec, rose 2.7 percent to HK$8.02. PetroChina Co, the nation's second-largest oil refiner, climbed 0.2 percent to HK$10.86.

CNOOC, China's dominant offshore oil producer, slipped 2.1 percent to HK$12.98, its lowest close since April 16.