HSBC leads HK shares up 3.8 pct;metals,property jump
* Metals surge on scuppered BHP-Rio deal
* Banks, exporters supported by Fed's $800 bln rescue plan
* Wharf up after Goldman Sachs adds it to conviction buy list
* Local property counters rally on Morgan Stanley upgrades
(Updates to close)
By Parvathy Ullatil
HONG KONG, Nov 26 (Reuters) - Hong Kong shares rose 3.8 percent on Wednesday, with HSBC (0005.HK) and exporters rallying on the U.S. Federal Reserve's latest rescue plan, while metal producers surged after BHP Billiton scuppered its bid for rival Rio Tinto.
But turnover remained thin and price momentum stayed weak, suggesting the market's two-day rally may be short-lived.
"There are very few funds flowing in despite the big gains on the index, which means there is no stability yet. The market will likely drop tomorrow," said Linus Yip, strategist with First Shanghai Securities.
Shares in U.S-focused consumer goods exporter Li & Fung (0494.HK) jumped 7.7 percent on the U.S. Federal Reserve's plan to spur consumer lending by buying up billions of dollars of debt and mortgage-backed securities.
Europe's top lender, HSBC Holdings, tracked gains in its Wall Street peers to climb 5.9 percent, while Standard Chartered (2888.HK), which was hammered on Monday on its planned $2.69 billion rights issue, bounced back 10.5 percent.
"With the focus on the mortgage market this time, this rescue plan is expected to lift consumer lending and encourage spending. Export companies are all rallying today," said Kenny Tang, research head at Redford Securities.
The benchmark Hang Seng Index .HSI ended up 490.85 points at the day's high of 13,369.45.
Mainboard turnover edged up to HK$41.7 billion from HK$41.2 billion at midday on Tuesday.
The China Enterprises Index of top locally listed mainland Chinese firms .HSCE had gained 4.2 percent to 6,934.11.
More talk of interest rate reductions on the mainland sent China Construction Bank (0939.HK) up 4.3 percent, while top lender ICBC (1398.HK) gained 2.7 percent. Property developer R&F Guangzhou (2777.HK) added 10.5 percent. Continued...
