Support from rebounding overseas markets and futures-related buying of heavyweight HSBC yesterday pushed the Hang Seng Index back above the 12,000-point level for the first time in a week.
As the market leapt higher, investors started to chase, helping to accelerate gains, dealers said.
'It is partially a technical rebound and most people are cautious ahead of the [Hang Seng Index] futures expiry on Thursday,' said Kenny Tang Sing-hing, a research manager with Tung Tai Securities. 'I don't think there is very good buying momentum above 12,000.'
But by the same token, most analysts, including Mr Tang, see good support at the 11,700 to 11,800 levels which suggests limited downside.
The index rose 1.34 per cent to finish 159.51 points higher at 12,008.07, near the mid-point of a narrow 90-point range in which it traded throughout the session.
Analysts said export-related stocks had been snapped up on expectations of an upward revision to United States third-quarter gross domestic product growth later in the global session as well as hopes of good retail sales in the US during the upcoming Thanksgiving holiday.