Hong Kong shares jumped 2.02 per cent yesterday as an apparent easing of the stand-off between the International Monetary Fund and the Indonesian Government boosted regional currencies and fed an easing of local interest rates. The Hang Seng Index closed 220.28 points higher at 11,118.85 - its best gain for a fortnight. Lippo Securities director Eugene Law Ka-kin said Indonesia remained the key to most investors' trading decisions. 'Anything happening in Indonesia could send our market into a tailspin,' Mr Law said. The IMF yesterday intimated that it was willing to tailor its reform programme to help reduce suffering in Indonesia. Comments from IMF deputy managing director Stanley Fischer also suggested that the agency might not necessarily oppose Indonesian President Suharto's proposed introduction of a currency board system. The conciliatory words boosted regional currencies during the day, with the Indonesian rupiah reaching an early high of 9,600 to the US dollar before retreating. Many of the region's stock markets benefited from the currency gains and a new high on Wall Street on Tuesday. The Philippine market performed best, closing 2.51 per cent higher, after a week-long slide. Falling interbank rates buoyed banks and property stocks in Hong Kong. The three-month Hong Kong interbank offered rate finished 0.25 percentage point lower at 7 per cent. HSBC dominated the market gains, climbing $7 to $223. Sun Hung Kai Properties finished $1 higher at $55. Turnover remained thin, however, at just $5.6 billion, a modest improvement on Tuesday's $4.95 billion, and compared with an average this year of $9.41 billion. BNP PrimeEast Securities institutional sales director Allen Chang said that while he did not expect a rapid recovery in trading volumes, investor sentiment had stabilised. 'Even when there is a correction there is no panic - people are accumulating shares at lower levels,' Mr Chang said. March index futures rallied 240 points to close at 11,200, an 81.15-point premium to the cash market, and April futures finished up 220 points at 11,210, or 91.15 points above the cash market. Mainland-related shares were stronger but failed to match the broader market's gains. The red-chip index climbed 0.85 per cent to finish at 1,646.58 points and the H-share index closed at 665.29 points, a 0.64 per cent gain. Brokers said China plays were boosted by the pricing by Beijing Enterprises' parent of its US$150 million convertible bond issue. They said the market remained locked in a trading range between 11,000 and 11,800 points. Mr Law said he did not think the market was ready to enter a period of sustained gains. 'There will still be a lot of volatility - it's good for the traders,' he said.