Hong Kong - Hong Kong stocks surged 7.41 per cent after encouraging US home sales and factory data buoyed investor confidence Thursday.

The benchmark Hang Seng index closed at its highest level for four months, finishing up 1,002.42 points at 14,521.97.

Turnover was 75.2 billion Hong Kong dollars (9.64 billion dollars).

Shares in banking giant HSBC led the way, soaring by 15.3 per cent to end the day at 49.40 Hong Kong dollars, its biggest daily gain in five months. The bank's share price had taken a battering over the last few weeks after executives announced an 18-billion-dollar rights issue.

The recovery of Hong Kong stocks was part of an Asia-wide resurgence that followed stronger-than-expected economic figures from the United States which suggested the world's largest economy is on the mend. (dpa)