HONG Kong shares rose 1.15 percent, or 263.13 points, Monday to close at a two-year high on hopes the United States will announce monetary easing measures to boost its ailing economy.

The benchmark Hang Seng Index reached 23,207.31 on turnover of 95.21 billion Hong Kong dollars (S$16 billion).

Chinese shares closed up 2.49 per cent to reach their highest since May as metals and coal firms extended gains on expectations of US pump-priming, dealers said.

The Shanghai Composite Index, which covers both A and B shares, was up 68.20 points at 2,806.94 on turnover of 253.5 billion yuan (S$49 billion).