Hong Kong stocks closed over 1,000 points higher Tuesday, tracking Wall Street's rally after better-than-expected U.S. home sales data released.

The Hang Seng index closed up 1,356.30 points or 6.43 percent at 22,464.52. The index opened at 21,841.78 and fluctuated between21,691.55 and 22,529.8 during the session.

Tuesday's performance marks the index's third biggest one-day gain this year, after January 23 and 25 when it surged 2,332 and 1,583 points, or 10.7 percent and 6.73 percent, respectively. Turnover was 100.6 billion HK dollars (12.94 billion U.S. dollars).

Semiconductor Manufacturing International Corp (SMIC) surged nearly 16.5 percent on news that it is in advanced talks to sell some stake to a strategic investor. While Air China surged 0.91 HK dollar or 15.17 percent to 6.91.

U.S. stocks moved up overnight after the National Association of Realtors reported that existing home sales in the United States rose 2.9 percent in February, the biggest gain in a year.

Among the major large-caps, HSBC rose 6.30 HK dollars or 5.22 percent at 127, China Mobile gained 8.30 HK dollars or 7.97 percent at 112.50, China Life was 2.30 HK dollars or 9.15 percent higher at 27.45 and HKEx was up 8.50 HK dollars or 7.15 percent at127.30.

Bank of China, who reported a better-than-expected net profit of 56.25 billion yuan for 2007 after market closed, was up 0.22 HK dollar or 7.28 percent at 3.24. BOC Hong Kong was up 1.44 HK dollars or 8.47 percent at 18.44.

ICBC rose 0.41 HK dollar or 8.56 percent to 5.20 and Jiangxi Copper rose 0.70 HK dollar or 5.04 percent to 14.60. Other China banks also closed higher on Tuesday as China Construction Bank was up 0.46 HK dollar or 8.98 percent at 5.58, Bank of Communications up 0.60 HK dollar or 7.33 percent at 8.79.

China telecom stocks were also higher on fresh speculation over industry restructuring on the mainland. China Unicom was up 1.54 HK dollars or 9.81 percent at 17.24 while China Telecom was up 0. 41 HK dollar or 9.01 percent at 4.96. China Netcom rose 1.90 HK dollars or 9.55 percent at 21.80.

Among local banks, Hang Seng Bank was up 2.60 HK dollars or 1. 88 percent at 140.90 while Bank of East Asia surged 3.30 HK dollars or 9.39 percent at 38.45.