The benchmark Hang Seng Index added 158.66 points to 24,135.03 on turnover of HK$77.65 billion ($10 billion).
"The biggest concerns will be a potential slow down in the economic growth in the US and Japan," Castor Pang, research director of Cinda International Holdings, told Dow Jones Newswires.
"We expect to see more fluctuations in Hong Kong shares in the weeks to come."
Analysts say dealers continue to be concerned about Japan after the crisis level at the stricken Fukushima Daiichi nuclear plant was raised to the most severe on the international scale, on par with Chernobyl in 1986.
Local property firms rallied on the back of gains by their mainland counterparts. Henderson Land rose 2.7 percent to HK$56.25 and Wharf Holdings gained 2.1 percent to HK57.30.
However, Alvin Cheung, associate director of Prudential Brokerage, noted that local developers face uncertainties about the property market.
"There are worries that property prices in Hong Kong have reached their peak and mortgage rates will climb. These will definitely be factors dragging share prices in the developers in the coming months," he said.
Hong Kong Financial Secretary John Tsang said Wednesday property prices in the city had passed 1997's peak before the real estate bubble burst, adding that the government will introduce control measures to avoid a repeat of that.
Foxconn International rose 2.8 percent to HK$4.84 after reports that its parent Foxconn Technology Group is considering $12 billion of investments in Brazil.
Chinese shares closed up 0.96 percent as gains in financials and real estate plays outweighed losses in resources firms, dealers said.
The Shanghai Composite Index, which covers both A and B shares, was up 29.03 points at 3,050.40 on turnover of 147.4 billion yuan ($22.4 billion).
The index is at its highest closing level since November 11.
"The market is set to gain further as banks' valuations remain at a relatively low level," China Development Bank analyst Li Xin said.
Banks were also boosted by hopes of a robust economic growth outlook for the country.
Agricultural Bank of China climbed 2.1 percent to 2.90 yuan and China Minsheng Banking Corporation added 2.2 percent to 5.98 yuan.
Property developers also rose on bargain hunting after recent losses.
Shanghai Lujiazui Finance and Trade Zone Development gained 2.7 percent to 18.29 yuan after dropping 1.9 percent over the previous two sessions. And Poly Real Estate Group was 2.2 percent higher at 14.15 yuan after falling 3.8 percent in the previous two sessions.
Metal stocks tumbled on weak commodity prices.
Zhuzhou Smelter Group shed 7.3 percent at 21.48 and Chalco ended down one percent at 11.92 yuan.