HONG KONG, Oct. 10 (AP) -- Hong Kong shares bounced back Monday after last week's declines, though buying interest was damped by lackluster regional markets and worries over higher interest rates.

The blue chip Hang Seng Index rose 50.98 points, or 0.3 percent, to 14,898.77.

"Investors are still a bit cautious that the recent weak performance in regional markets could lead to another major correction in Hong Kong," said Herbert Lau, director of research at CASH Research Ltd.

While South Korea's Kospi rebounded 2.2 percent Monday after falling about 3 percent the previous week, Shanghai's Composite Index fell 1.5 percent on its first trading day following last week's national day holidays.

Lau said concerns that speculative funds will flow out of Asia amid weaker equity markets will keep the Hang Seng Index capped below 15,000 in the near term. The benchmark index fell about 4 percent in the past week.

SHK Financial's Strategist Castor Pang said market players were also sidelined ahead of the Chung Yeung holiday Tuesday, when local markets will be closed.

He said the focus for investors this week will be the U.S. Federal Reserve's meeting minutes and September's consumer price index data. Hong Kong rates tend to follow U.S. rates as the Hong Kong dollar is pegged to the U.S. dollar.

"Most importantly, investors want to get a feel of the interest rate outlook (in the U.S.)," he said.

Among blue chip stocks, conglomerate China Resources Enterprise was the biggest gainer, with its share price surging 4.5 percent to HK$12.70 after the company said it plans to divest its noncore assets.

Shares of offshore oil producer CNOOC also rose 2 percent to HK$5.10 on bargain hunting after last week's declines, while computer maker Lenovo Group gained 2.1 percent to HK$3.58.

Turnover totaled 13.71 billion Hong Kong dollars (US$1.76 billion, euro1.45 billion), down 26 percent from HK$18.53 billion (US$2.38 billion, euro1.96 billion) Friday.