AFTER a day of see-saw trading, share prices in Hong Kong settled down as relief over Wall Street's overnight gains spread through the market.
The big plunge which had been seen in London on Monday was not carried through to local trading, and the Hang Seng Index finished the day with a modest 39.89 gain to 11,454.16 points.
The turmoil also subsided in other markets in the region as investors re-considered last Friday's marginal increase in rate cuts by the US Federal Reserve.
Thailand, which dived 6.9 per cent on Monday, rose 1.56 per cent or 20.92 points, led by blue-chip banks and construction companies, which investors bid up in the belief that earnings would rise despite the possibility of rising global interest rates.
Elsewhere, Malaysia's key index increased 14.70 points at 1,108.72 while Singapore's Straits Times Industrials Index edged up 7.19 to close at 2,321.64.
In London, Morgan Stanley announced that it was favourably re-weighting its recommended holdings of Malaysia, Singapore and Australia, but not Hong Kong.
