Hong Kong stocks rose more than 1 per cent yesterday, following in the wake of Wall Street's 2.6 per cent gain on Tuesday, the second-largest one-day points rise.
The Hang Seng Index advance was tempered, however, as worries persisted over the property market.
Mansion House Securities head of research Stanley Ng said: 'People are still a little worried about the property market. Even if they are confident in the long term, they are not willing to make aggressive moves.' The Hang Seng Index ended at 12,707.04, up 126.19 points.
Turnover also looked more bullish, registering $9.89 billion, up from $8.73 billion on Tuesday.
Among blue chips, banking stocks were the most buoyant, enjoying the afterglow of Wall Street's advance, while remaining largely immune to Hong Kong's property worries.
HSBC, the parent company of Hongkong Bank, climbed 1.34 per cent to $189.50.