The blue chip Hang Seng index rose 182.61 points, or 1.4 percent, to 13,552.06.
The gains came after China slashed a key interest rate by 1.08 percentage point -- its biggest cut since 1997 and the fourth in three months -- after markets closed on Wednesday.
Analysts said China's aggressive move helped improve sentiment, but investors still remained cautious about the global economic outlook.
''Although it looks like sentiments are better, there are still concerns about negative news or any asset liquidation of financial institutions,'' said Castor Pang, an analyst at Sun Hung Kai Financial.
Mainland Chinese property stocks soared on the country's rate cut. Guangzhou R&F Properties Co., Ltd. jumped 12.2 percent to 4.14 Hong Kong dollars. China Overseas Land and Investment also gained 7.6 percent to HK$9.79 and China Res Land was 5.3 percent higher at HK$9.30.
Chinese financial stocks also moved higher with China Construction Bank adding 2.4 percent to HK$4.20. Major Chinese lender ICBC also rose 1.6 percent to HK$3.82.
