The Hong Kong market leapt 4.89 per cent yesterday, closing the gap with rallies elsewhere in the region as international investors wager on a turnaround in Asia.
The Hang Seng Index rose 541.89 points to close at 11,614.87, its highest finish in just more than a year, after trading resumed for the first time since last Thursday.
Developers and banks - Cheung Kong and HSBC - traded at pre-crisis prices, while utilities and red chips saw smaller advances.
Brokers said Hong Kong and other regional markets could hope to rally further, led by Wall Street, on signs of an Asian turnaround and an increase in overseas liquidity.
That liquidity could be seen in the stock markets, the eager take-up of recent bond and equity issues, and in direct investments such as British Telecommunications' 20 per cent stake in SmarTone Telecommunications this week, analysts said.
'None of the [Hong Kong] market numbers look cheap, but you've got to look at this on a global basis. There is an awful lot of money swilling around the world at the moment,' Paribas research head Simon Irwin said.