Gains on Wall Street overnight on improving consumer confidence sent Hong Kong shares to their highest settlement level in seven months Wednesday, led by HSBC and local property developers.

The benchmark Hang Seng Index rose 893.71 points, or 5.26 percent, to 17,885.27. It was the blue-chip index's highest close since it settled at 17,682 Oct. 3.

Turnover rose to 93.06 billion HK dollars (12.01 billion U.S. dollars) from Tuesday's 56.29 billion HK dollars (7.27 billion U.S. dollars).

But analysts said the market may soon run out of steam as the global economy isn't out of the woods yet.

On Tuesday, the Dow Jones Industrial Average gained 196.17 points, or 2.37 percent, to 8473.49, its biggest point and percentage gain since May 18. With the Conference Board saying its index of consumer confidence for May jumped to its highest reading since September, investors pushed into nearly every sector.

Index heavyweight HSBC rose 5.8 percent to 68.75 HK dollars, cheered by U.S. consumer confidence data. The lender's rise contributed 200.50 points to the Hang Seng Index's 893.71-point gain, or almost 22 percent of gains.

The Hang Seng Properties Index jumped 5.8 percent on hopes Hong Kong's low-interest-rate environment will support home sales. Cheung Kong rose 5.1 percent to 95.65 HK dollars, Henderson Land gained 7.7 percent to 46.10 HK dollars, and Sun Hung Kai properties ended 5.1 percent higher at 97.40 HK dollars.

The finance sub-index went up 1,401.42 points or 5.62 percent to 26,347.47.

The properties sub-index jumped 1,354.13 points or 5.76 percent at 24,853.58.

The commerce and industry sub-index went up 475.08 points or 5.15 percent to 9,703.81.

The utilities sub-index rose 399.02 points or 1.12 percent at 35,898.25. (7.7455 HK dollars = 1 U.S. dollar)

Source: Xinhua