* Hang Seng index at 14-month closing high
* Shanghai at four-week high, led by property stocks
* Sentiment upbeat on brisk earnings, economic data
* Powerlong pares debut gains to 1.8 pct from 14 pct (Updates to close)
By Nerilyn Tenorio and Claire Zhang
HONG KONG/SHANGHAI, Oct 14 (Reuters) - Hong Kong stocks packed on more gains on Wednesday to close up 1.95 percent at a 14-month closing high, driven by liquidity inflows from investments exiting the U.S. dollar, which touched a 14-month low.
China's key stock index rose 1.17 percent to a four-week closing high on Wednesday, led by property shares on the back of strong earnings while upbeat trade data boosted sentiment.
Commodity and export-related stocks soaked up most of the funds in Hong Kong.
The market largely ignored concerns over a possible property bubble as Chief Executive Donald Tsang said the government was ready to avert such a situation. The property sub-index ended with a 1.58 percent gain.
The benchmark Hang Seng Index rose 419.12 points to finish at 21,886.48, its highest level since Aug 7, 2008. Turnover increased to HK$64.6 billion ($8.3 billion) from Tuesday's HK$60.4 billion. The China Enterprises Index of top Hong Kong-listed mainland companies gained 2.16 percent to 12,777.74.
"The market is likely to go even higher in the near term," said Patrick Yiu, associate director at Cash Asset Management. "The momentum is still quite strong. The HSI may test the 22,000 level tomorrow," Yiu added.
U.S. DOLLAR AT 14-MTH LOW
At 0825 GMT, the U.S. dollar index was down 0.5 percent at 75.611 against a basket of major currencies, near a 14-month low.
Powerlong Real Estate Holdings rallied more than 14 percent before giving up most of its gains to end 1.8 percent higher at HK$2.80 on its debut, against an IPO price of HK$2.75.
PetroChina gained 5.17 percent to HK$9.96, while CNOOC gained 3.48 percent to HK$11.90 after U.S. crude futures rose for a fifth day towards their 2009 high of $75 per barrel, helped by the weak dollar.
China Resources advanced 3.6 percent as commodity and export-oriented stocks benefitted from the U.S. dollar's weakness and record gold prices.
Tencent, China's largest instant messaging platform operator, jumped 6.16 percent. The stock has been upgraded to "buy" from "hold" by Citi because of expected growth in its resilient client base and defensive nature.
SHANGHAI RESISTANCE BREACHED
The Shanghai Composite Index ended up 34.341 points at 2,970.532 after rising as high as 3,010.611, breaching the psychologically important 3,000-point level for the first time in nearly a month.
Gaining Shanghai A shares outnumbered losing shares by 655 to 205, while turnover rose to a three-week high of 141 billion yuan ($20.66 billion) from Tuesday's thin 88 billion yuan.
"Upbeat trade data pointed to a better picture for the economic recovery, while firmer earnings in the third quarter are boosting investor confidence," said Chen Jinren, senior analyst at Huatai Securities in Nanjing.
China's exports fell 15.2 percent in September from a year earlier, while imports fell 3.5 percent, Xinhua news agency said on Wednesday. The declines were much less than expected.
"The index has moved into an uptrend despite heavy new share supplies, but it may consolidate for a couple of days around stiff resistance at 3,000," Chen said.
A steady stream of IPOs and other new share supplies have damped sentiment, sending the index down 6 percent in the third quarter in its worst quarterly performance this year.
"3,000 points offers stiff resistance and investors are cautious given the prospects for more share supplies," said Cao Xuefeng, senior analyst at Western Securities in Chengdu.
In the property sector, China State Construction and Engineering, the most actively traded share in Shanghai, jumped by its 10 percent daily limit to 5.25 yuan after saying its sales rose 81 percent to 37 billion yuan in the first nine months of the year.
Gemdale climbed 5.77 percent to 14.67 yuan after saying its sales reached 15 billion yuan in the first nine months of the year, up 91 percent from the same period last year.
Travel shares were firmer on brisk business over China's week-long National Day holiday last week and speculation that China International Travel Service would make a strong market debut.
China International Travel said on Wednesday it would list on in Shanghai on Thursday after raising 2.6 billion yuan ($381 million) in an initial public offering last month
China United Travel climbed 7.68 percent to 5.47 yuan.
CITIC Securities said in a recent research note that the market could gain strength in the fourth quarter, as earnings at listed companies are expected to improve in the fourth quarter and next year's first quarter. An export recovery and accelerated property sector investment could also fuel stock market gains. (Editing by Chris Lewis)