HONG KONG, July 16: Asian shares edged higher on Monday on the back of a strong Wall Street rally, but Chinese stocks plunged to a new three-year low after growth in the world’s second-largest economy slowed.

Hong Kong's benchmark Hang Seng index closed up 0.15 per cent, or 28.71 points, at 19,121.34, while Sydney finished 0.56 per cent, or 22.9 points, higher at 4,105.1, with resource stocks leading the way.

But the Shanghai Composite Index slumped 1.74 per cent, or 37.94 points, to 2,147.96, its lowest level since March 2009. Tokyo was closed for a public holiday.

Official data released Friday showed the Chinese economy expanded 7.6 per cent in the second quarter year-on-year, its slowest pace for more than three years as it was hit by ripples from the eurozone debt crisis and slow US recovery.

Traders were also looking to US Congressional testimony from Federal Reserve chairman Ben Bernanke on Tuesday and Wednesday for any hint on a third round of quantitative easing, DBS Group Research said in a report.

“As far as the market is concerned, it is a question of 'not if, but when' the Fed will move towards a third round of quantitative easing measures or QE3,” the report said.

European shares opened weaker on Monday, with London's FTSE 100 index down 0.18 per cent, the DAX 30 in Frankfurt 0.09 per cent lower, and Paris' CAC 40 off 0.17 per cent.

The US is China's biggest trading partner and on currency markets the dollar advanced against the euro, with the single currency fetching $1.2179 in afternoon Asian trade compared to $1.2248 in New York on Friday.

In other markets: Singapore closed up 0.11 per cent, or 3.19 points, at 2,998.75.

United Overseas Bank gained 0.83 per cent to Sg$19.55 and Keppel Corp rose 0.55 per cent to Sg$10.89.

Seoul was up 0.27 per cent, or 4.90 points, at 1,817.79.

Kuala Lumpur ended 0.59 per cent, or 9.58 points, higher at 1,635.96.

Maxis rose 1.5 per cent to 6.65 ringgit while Axiata Group and Telekom Malaysia both gained 1.7 per cent, to 5.84 and 6.02 ringgit respectively.

Taipei fell 0.20 per cent, or 14.23 points, to 7,090.04.

Taiwan Semiconductor Manufacturing Co closed 0.40 per cent lower at Tw$75.5 while Hon Hai Precision added 0.57 per cent at Tw$87.5.

Jakarta rose 0.69 per cent, or 27.79 points, to 4,047.47.

Coal miner Adaro was up 2.9 per cent at 1,420 rupiah while rival Bumi fell 1.8 per cent to 1,170 rupiah, and Telkom jumped 2.3 per cent to 8,850 rupiah.

Bangkok rose 0.33 per cent, or 3.96 points, to 1,214.25.

Banpu gained 0.44 per cent to 458.00 baht, while PTT lost 0.90 per cent to 331.00 baht.

Wellington fell 0.80 per cent, or 28.07 points, to 3,467.34 Telecom Corp was down 3.1 per cent at NZ$2.47, Fletcher Building off 1.7 per cent at NZ$5.88 and Air New Zealand down 1.1 per cent at NZ$0.875.

Mumbai fell 0.64 per cent, or 110.39 points, to 17,103.31.

Tata Steel fell 3.95 per cent to 408.85 rupees while group firm TCS, India's biggest outsourcing firm, slid 3.16 per cent to 1,210.2.—AFP