Hong Kong stocks powered to their biggest one-day gain in almost a year yesterday, as a successful land auction and good news from Wall Street boosted sentiment.
Property developers led the way up, as many investors felt the long-awaited recovery in property prices was now under way.
The China-Taiwan tension was now largely discounted, brokers said, although some saw it continuing to cause concern until this week's presidential election in Taiwan.
The Hang Seng Index closed 279.22 points, or 2.63 per cent, up at 10,880.5, its biggest one-day rise since June last year. Turnover was moderate, at $4.99 billion, compared with a revised $3.48 billion on Monday.
The March index futures also rallied, with the contract climbing 240 points to 10,815, a 65.5-point discount to the cash index.
In London, the Hang Seng London Reference Index closed up 4.94 points, or 0.05 per cent, at 10,885.44.
