Hong Kong stocks jumped the most in six weeks, as a surge in US home sales increased speculation the world's biggest economy can withstand higher interest rates.

The Hang Seng Index rose 2.7 percent at the close. PetroChina Co posted its steepest increase since mid-April as oil approached $50 a barrel. Billionaire Li Ka-shing's Cheung Kong Property Holdings Ltd climbed to a two-week high. The Shanghai Composite Index slipped 0.2 percent, dragged down by airlines.

Hong Kong stocks joined a global rally after US equities climbed amid speculation the US economy can tolerate higher borrowing costs, as odds increase the Federal Reserve will tighten policy this summer. Whether shares can sustain the rebound amid concerns about higher US rates and slowing mainland economic growth will depend on turnover, according to Partners Capital International in Hong Kong.

Hong Kong stock gains were "driven by short covering after US new-home sales data greatly exceeded estimates", said Hao Hong, chief China strategist at Bocom International Holdings Co in Hong Kong. "The rebound driven by short covering is hardly a turnaround with a lack of improvement in fundamentals."

The Hang Seng Index climbed for a second day to 20,368.05.

Energy companies rallied the most in Hong Kong, with China Shenhua Energy Co gaining 6.1 percent after the Economic Information Daily reported China's four biggest coal producers may consider a price increase in June. PetroChina advanced 3.9 percent. Cheung Kong and Henderson Land Development Co both increased at least 3 percent.

The Hang Seng Index is trading at 10.6 times projected 12-month earnings, about 20 percent cheaper than last year's April high, after falling 7.2 percent in 2016 amid a surfeit of bad news.