Some investors are expected to take profit today following yesterday's heavy trading and surge in stocks.
Traders yesterday chose to look on the bright side after a spate of news suggesting the global economy is in its most perilous shape since the financial crisis, sending the Hang Seng Index up by 5.63 per cent or 1,012.91 points.
The rally came after mainland China's official purchasing managers' index recorded its worst reading for manufacturing output since 2009, policymakers in Beijing moved to boost lending in response to a slowing economy and six central banks acted in unison to slash the cost of emergency US dollar borrowing for non-US commercial lenders.
'It all depends from what angle you look at things. Of course the PMI figure was really disappointing, but if it leads to further easing, then it is a positive,' KGI Asia chief operating officer Ben Kwong Man-bun said.
'The market reacted very positively to the co-ordinated action of the central bankers, but from another angle it was because the situation is really so bad that they could not wait and had to act together.
'If the sentiment is favourable and things are seen as positives, you can't argue with the market and have to just let it go.'