HONG KONG, Nov. 26 (Xinhua) -- Hong Kong stocks closed sharply higher on Wednesday, extending its sharp gains to two consecutive sessions after the U.S. Fed took bold steps forward to support the crunched credit markets with new programs worth 800 billion U.S. dollars.

    Boosted by the U.S. Federal Reserve's aggressive move, the benchmark Hang Seng Index rose 111.75 points, or 0.87 percent, to open at the day's lowest level at 12,990.35 and widened its gains to close at the day's peak 13,369.45.

    Among 42 Hang Seng Index components, advancers greatly outnumbered declining stocks 37 to 5.

    Turnover rose to 41.68 billion HK dollars (5.38 billion U.S. dollars) from Tuesday's 41.23 billion HK dollars (5.32 billion U.S. dollars).

    The Federal Reserve's move prompted investors to buy into shares of financial, energy and property sectors, which helped the market to reclaim the 13,000 level easily.

    HSBC, the largest lender in Hong Kong that accounts for the largest weighting of the Hang Seng Index, advanced 5.88 percent to81 HK dollars, lifting the index by 115.09 points alone.

    Another market heavyweight China Mobile, the market's largest company measured by capitalization or the country's biggest telecommunication operator, went up 3.08 percent to 68.55 HK dollars.

    The Hong Kong Exchanges and Clearing Ltd. the market's sole operator, was up 4.09 percent to 57.25 HK dollars.

    China's banks and insurers listed in Hong Kong were higher. ICBC, China's largest lender, was up 2.73 percent to 3.76 HK dollars. Bank of China, the second largest bank in the country, rose 3.14 percent to 2.3 HK dollars. China Construction Bank, the country's third banking giant, rallied 4.33 percent to 4.1 HK dollars. Bank of Communications moved up 4.23 percent to 4.7 HK dollars. China Merchants Bank added 1 percent to 12.24 HK dollars. China Life, the country's largest insurance company, gained 3.03 percent to 20.4 HK dollars. Ping An jumped 5.29 percent to 30.85 HK dollars. CITIC Bank underperformed the index by falling 2.04 percent to 2.4 HK dollars.

    Property companies in Hong Kong all rose on hope that the Federal Reserve would further cut the interest rate, a move local banks will likely follow. Sung Hung Kai Property, the city's largest housing company, jumped 8.63 percent to 57.25 HK dollars. Cheung Kong climbed 5.26 percent to 70 HK dollars. Henderson Land rose 6.94 percent to 26.2 HK dollars. New World Development moved up 5.19 percent to 5.68 HK dollars. Sino Land rallied 8.17 percent to 5.43 HK dollars.

    The China Enterprise Index, or H-shares reflecting the performance of 42 companies registered in the Chinese mainland, rose 276.11 points, or 4.15 percent, to 6,934.11.

    China's energy companies were all higher. PetroChina, the country's largest oil producer, rose 3.81 percent to 6 HK dollars. Sinopec, Asia's largest refiner, surged 6.89 percent to 4.81 HK dollars. CNOOC, China's largest offshore oil producer, went up 4. 36 percent to 5.74 HK dollars.

    China's steel and mining sectors were encouraged by iron ore giant BHP Billiton Ltd.'s withdrawal from bidding Rio Tinto PLC. Angang Steel surged 13.33 percent to 5.78 HK dollars. Maanshan Iron rose 2.81 percent to 1.83 HK dollars. Chongqing Iron added 3.33 percent to 1.55 HK dollars. CITIC Resources soared 12.5 percentto 0.495 HK dollars.

    Property companies in China all jumped. China's central bank announced after trading closed that it will cut the interest rate by 1.08 percent while lowering the deposit reserve ratio by 1 percent. China Overseas gained 3.06 percent to 9.1 HK dollars. R&F Properties jumped 10.48 percent to 3.69 HK dollars. KWG Property surged 13.45 percent to 1.35 HK dollars. Agile Property went up 12percent to 2.52 HK dollars. Hopson Development soared 21.03 percent to 2.36 HK dollars. Greentown China went up 9.05 percent to 2.29 HK dollars. (7.746 HK dollars = 1 U.S. dollar)