Hong Kong stocks rebounded from morning losses, dragged by China Mobile, and closed up more than 1 percent on Wednesday after oil-related shares sparked a big rally on the blue-chip index.

Global Crude oil prices rose for the first time to hit $129.60 a barrel in New York. Sinopec, China's largest oil refiner, jumped nearly 5 percent to reach HK$7.57 after oil price hit the new record high. PetroChina, the nation's biggest oil producer, gained 3.42 percent to HK$11.36.

Index heavyweight China Mobile, the most traded stock on Wednesday, fell 0.8 percent. Investors worried the looming restructuring in the sector weakened China Mobile's advantage on mobile business.

The benchmark Hang Seng Index rose 1.14 percent to 25,456.83 in Wednesday trade. The China Enterprises Index of Hong Kong-listed companies, or H shares, finished 1.15 percent higher.

Main-board turnover eased to HK$79.23 billion ($10.16 billion) from HK$82.8 billion on Tuesday.

The blue chip Hang Seng Index could test the low of 24,600 to 24,700 if US stocks continue to fall tonight, forecast by Andrew To, sales director at Tai Fook Securities.