Hong Kong stocks rallied more than one percent on Thursday as investors returned from a midweek break to news that US inflation had started to slow again, boosting hopes for an interest rate cut.

The Hang Seng Index climbed 1.6 percent, or 302 points, to 19,376.

The Shanghai Composite Index edged up 0.1 percent, or 2 points, to 3,122, while the Shenzhen Composite Index gained 0.3 percent, or 5 points, to 1,764. (AFP)