Reports of strong retail sales in the U.S. over the weekend following Thanksgiving and a technical rebound after last week's falls sent Hong Kong shares sharply higher Monday.

    The Hang Seng Index rose 1,085.53 points, or 4.1 percent, to 27,626.62 after trading between 27,311.88 and 27,643.56 during the session.

    Turnover reached 110.14 billion Hong Kong dollars (14.18 billion U.S. dollars), up slightly from 104.89 billion Hong Kong dollars (13.50 billion U.S. dollars) Friday.

    All but one of the benchmark index's 40 constituents posted gains, but traders said the local market will likely be volatile in the coming days, ahead of the settlement of the Hang Seng Index November futures Thursday and on investor caution after the recent correction.

    Over the weekend, there were initial reports of a bumper shopping weekend in the U.S., reassuring investors that U.S. consumers continue to shop despite falling house values, rising gasoline prices and the subprime mortgage crisis.

    Heavyweight China Mobile rose 4.1 percent to 134.80 Hong Kong dollars while HSBC ended 1.4 percent higher at 133.50 Hong Kong dollars.

    Property companies also rose. Cheung Kong gained 5.4 percent to139.90 Hong Kong dollars and New World Development rose 5 percent to 27.30 Hong Kong dollars. Among Oil firms, Sinopec rose 9.5 percent to 11.30 Hong Kong dollars and Cnooc surged 5 percent to 13.96 Hong Kong dollars.

    Footwear firm Yue Yuen Industrial was the only blue chip to fall. It ended 0.2 percent lower at 24.80 Hong Kong dollars.

    The finance sub-index soared 1,293.44 points or 3.31 percent to 40,358.08.

    The properties sub-index surged 1,436.93 points or 4.24 percent at 35,287.57.

    The commerce and industry sub-index went up 773.79 points or 4.95 percent to 16,406.43.

    The utilities sub-index soared 1,328.62 points or 3.60 percent at 38,196.26.