HONG KONG: Hong Kong shares closed 1.81 percent higher Wednesday, in holiday-shortened trade, as dealers welcomed strong gains on Wall Street.
The benchmark Hang Seng Index rose 426.01 points to 23,908.96 on turnover of HK$43.27 billion ($5.55 billion).
Financial markets in Hong Kong were open for only a half day Wednesday and will be closed Thursday and Friday for the holiday. Shanghai was closed Wednesday. The index has risen 3.8 percent so far this year.
Traders were boosted by the Dow's 1.25 percent rise in New York to finish above 12,000 for the first time since June 2008. US traders went into buying mode following encouraging economic data and strong corporate results.
However, Jackson Wong, investment manager at Tanrich Securities, warned that the Hang Seng could experience trouble further down the road.
"I think a negative sentiment is slowly emerging because of the uncertainties surrounding the political situation in the Middle East and the euro crisis," he said.
"This sentiment has yet not been reflected in the Hong Kong market as we still have a continued inflow of liquidity."
Tycoon Li Ka-shing's property group Cheung Kong was the best performer, rising 5.7 percent to HK$134.60 while Sino Land ended 3.5 percent higher at HK$15.30.
"Property prices in Hong Kong are set to rise further this year. It is clear that the impact of the government's control measures are limited," Wong told Dow Jones Newswires.
Property analysts said earlier they expect prices of residential properties to rise 10-15 percent this year.
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