Hong Kong shares rise, helped by wave of short covering
* Gambling stocks lead gainers, financials one too
* Index likely to meet resistance around the 22,00 level
* Encouraging sign as recent gains come amid good volumes
* Gap shrinks between valuations of China and HK markets
HONG KONG, Oct 5 (Reuters) - Hong Kong shares rose nearly 2 percent early Monday, led by financials and Macau gambling stocks, lifted by a wave of short covering and hopes for China policy moves, though gains may be limited around a key level.
For the second consecutive day, casino stocks led market gainers. One broker credited better-than-expected tourist arrivals n Macau during China's Golden Week holidays.
The benchmark Hang Seng Index rose 1.8 percent to 21,890.22 points, its highest since Sept. 22. On a three-day rolling basis, the index has gained 6.5 percent, its biggest rise since mid-July, when Beijing rolled out initiatives to rescue its stock market.
Shares of Galaxy Entertainment rose 5.3 percent, Sands China climbed 5.7 percent while Li & Fung advanced 4.5 percent. Financials took heart from the reduced likelihood of a a U.S. rate increase this year.
"People are covering back their short positions as sentiment has been too bearish earlier, but I wouldn't be very bullish as the overall economic picture remains bad," said Alex Wong, director of Ample Finance Group. Continuación...