Hong Kong stocks jumped by 3.5 per cent Monday, spurred on by a resurgent Wall Street to stage their biggest one-day rally in five months.

The Hang Seng Index closed up 712.23 points at 21,104.79 points, 3.5 per cent higher than Friday's close. Turnover was 55.6 billion Hong Kong dollars (7.1 billion US dollars).

The strong performance by the Hong Kong market saw blue chips jump in value as Hong Kong reacted to big gains on Wall Street Friday. On Thursday, the Hang Seng Index lost 2.6 per cent.

Hong Kong's dollar is pegged to the US greenback and the former British colony's stock market closely mirrors and reacts to the ups and downs of Wall Street.