Hong Kong's main stock index rises 3.5 percent

Hong Kong's key stock index rose 3.5 percent Monday, lifted by Wall Street's strong finish and hopes for more government measures to boost China's economy.

The blue-chip Hang Seng Index gained 520.50 points to 15563.31.

Investors were heartened by Wall Street's gains on Friday, when the Dow Jones industrial average jumped nearly 3 percent.

Growing optimism that 2009 might see a turnaround in the global economy, fueled by more stimulus talk in China and the U.S., also lifted sentiment.

Chinese Premier Wen Jiabao said over the weekend that Beijing would enact new measures to help the steel and auto industries. In the U.S., President-elect Barack Obama urged congressional leaders Saturday to move quickly on recovery measures that aides say could cost as much as $775 billion.

"The market is relatively cheap, and with investors hoping for a recovery in the global economy in the second half, it makes sense to buy now before that happens," said Dariusz Kowalczyk, chief investment strategist for SJS Markets.

Among the biggest gainers was Foxconn International Holdings, a leading contract mobile phone maker, after Beijing said last week it had approved next-generation mobile licenses.

Its shares exploded 25 percent to 3.8 Hong Kong dollars ($0.49) amid speculation that the company would see a windfall in new equipment sales with the rollout of third-generation services.

Shippers and energy producers also soared on the back of higher commodities prices.

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Stock Exchange of Hong Kong: http://www.hkex.com.hk