Bargain hunting and short covering lifted Hong Kong stocks yesterday following a sharp correction on Monday which had come amid investor uncertainty over United States credit costs, the mainland's slowing economy and a potential energy crisis.
The Hang Seng Index gained 0.95 per cent or 104.74 points to 11,072.39 following a 2.74 per cent slide on Monday. The H-share index jumped 3.86 per cent or 137.03 points to 3,683.28 after diving 5.35 per cent on Monday.
Trading was relatively quiet, with the turnover at $12.37 billion.
Brokers said investors remained cautious. Sentiment was generally negative.
'General investors were still not willing to make long-term meaningful buys, despite attractive valuations. Most of the buying yesterday was covering earlier short positions,' UOB Kay Hian sales director Steven Leung Wai-yuen said.
Looking ahead, market players are not too upbeat.
