HONG Kong's stocks yesterday rose the most in more than two months after better-than-estimated earnings at Wal-Mart Stores Inc eased concern that the United States economy is headed for a recession.

Li & Fung Ltd, a Wal-Mart supplier, jumped the most in almost two weeks. HSBC Holdings Plc, which generated 31 percent of its revenue last year in North America, climbed after Goldman Sachs Group Inc said it doesn't plan to take significant writedowns on mortgage-related assets.

"We've got pretty good corporate news that came out from the US, and Wal-Mart definitely helps," said Tat Auyeung, who oversees US$400 million at Apex Capital Management in Hong Kong. "Investors are trying to bargain hunt."

The Hang Seng Index climbed 1,362.66, or 4.9 percent, to 29,166.01, the biggest move among markets included in global benchmarks, said Bloomberg News. The Hang Seng China Enterprises Index, which tracks 43 H shares of Chinese companies listed in Hong Kong, rose 6.8 percent to 17,837.13. Both gauges posted their biggest advances since August 20.

Concern about the extent of losses on US home loans helped drag stocks lower worldwide in the past two weeks. The Morgan Stanley Capital International Asia-Pacific Index dropped as much as 8.2 percent from its November 1 record close of 172.32.

The Hang Seng lost 12 percent from its October 30 high of 31,638.22 through Tuesday. CNOOC Ltd's 24 percent decline made it the measure's worst performer during that period. CNOOC, China's biggest offshore oil producer, added 70 cents, or 5.4 percent, to HK$13.58 (US$1.74) yesterday.

China Life Insurance Co, the nation's biggest insurer, advanced HK$2.85, or 6.6 percent, to HK$45.75, having dropped 17 percent in the two weeks through yesterday. China Mobile Ltd, the world's largest mobile-phone operator by users, rose HK$11.90, or 9.2 percent, to HK$140.80, after an 18 percent loss.

China Mobile and other phone stocks also advanced on speculation that high-speed wireless services may be introduced sooner than expected.

China Unicom Ltd, the smaller of the nation's two mobile-phone companies, rose 90 cents, or 6.2 percent, to HK$15.44. China Telecom Corp, the nation's biggest fixed-line telephone carrier, gained 43 cents, or 8.1 percent, to HK$5.75, its biggest gain since October 11. China Netcom Group Corp (Hong Kong) Ltd, China Telecom's smaller competitor, climbed HK$1.04, or 5.2 percent, to HK$21.

China Mobile's parent, China Mobile Communications Corp, is building trial 3G networks using China's locally developed technology in eight cities, with construction expected to finish by the end of this year, Chairman Wang Jianzhou said on Tuesday.

Li & Fung, which got 72 percent of its sales from the US last year, rose HK$2.25, or 7.6 percent, to HK$32, its biggest gain since November 1.