The Hong Kong stock market has moved higher in back-to-back sessions, gathering almost 1,000 points or 4.6 percent along the way. The Hang Seng Index now sits just beneath the 23,100-point plateau although its likely to open to the downside on Tuesday.
The global forecast for the Asian markets is soft, ahead of key economic and earnings data later this week. The European markets were mixed and flat and the U.S. bourses were solidly lower and the Asian markets are tipped to follow the latter lead.
The Hang Seng finished sharply higher on Monday with gains across the board, especially among the property stocks and technology companies.
For the day, the index spiked 362.91 points or 1.60 percent to finish at 23,099.78 after trading between 22,719.91 and 23,241.74.
Among the actives, Alibaba Group rose 0.61 percent, while Alibaba Health Info and CNOOC both climbed 2.32 percent, ANTA Sports rallied 3.91 percent, China Life Insurance surged 12.42 percent, China Mengniu Dairy accelerated 8.05 percent, CITIC skyrocketed 12.88 percent, CSPC Pharmaceutical strengthened 4.55 percent, Galaxy Entertainment soared 9.34 percent, Haier Smart Home spiked 3.77 percent, Hang Lung Properties advanced 2.76 percent, Henderson Land sank 0.38 percent, Hong Kong & China Gas gained 0.93 percent, JD.com and Li Auto both added 1.26 percent, Lenovo jumped 3.95 percent, Li Ning spiked 8.93 percent, Meituan eased 0.09 percent, New World Development strengthened 3.43 percent, Nongfu Spring advanced 2.20 percent, Techtronic Industries tumbled 2.63 percent, Xiaomi Corporation jumped 5.30 percent, WuXi Biologics rallied 6.53 percent and China Resources Land and Industrial and Commercial Bank of China were unchanged.
The lead from Wall Street is weak as the major averages opened lower on Monday and only moved lower as the day progressed, ending near session lows.
The Dow tumbled 398.51 points or 0.94 percent to finish at 41,954.24, while the NASDAQ plunged 213.95 points or 1.18 percent to close at 17,923.90 and the S&P 500 sank 55.13 points or 0.96 percent to end at 5,695.94.
The weakness on Wall Street came as traders reassessed their expectations for the outlook on interest rates. After Fridays upbeat jobs data, traders now expect only a quarter-point cut in interest rates at the Federal Reserves next policy announcement on Nov. 7.
The mood is cautious as investors await readings on consumer price and producer price inflation later in the week, as well as earnings announcements from several top banks.
On the geopolitical front, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas cross-border attack in Israel, which triggered the Middle East war.
Oil prices rose sharply on Monday amid the rising possibility of disruptions in supply in the Persian Gulf due to escalating tensions in the Middle East. West Texas Intermediate Crude oil futures for November jumped $2.76 or 3.71 percent at $77.14 a barrel, the highest close in nearly eight weeks.