“Investors’ worries over the uncertainty of the presidential elections and US-China tensions have been eased now that Trump has left the hospital,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai. “There are also growing expectations that US fiscal stimulus measures could be negotiated soon.”

The long-awaited stimulus package that has been stalled in Congress could pass in the coming weeks, said David Chao, global market strategist for Asia-Pacific at Invesco. “The September US employment data shows new jobs creation losing momentum and could catalyse Congress to expedite the bill worth around US$2 trillion,” he said.

Chinese carmaker Geely Auto led gains, rising 6.1 per cent. Drugs research firm WuXi Biologics, which was added as a member of the Hang Seng Index last month, rose 5 per cent.

Market sentiment also got a boost from upbeat consumer spending from mainland China’s “golden week” holiday, said Wen. Shares related to domestic demand in China gained. Haidilao rose 2.2 per cent, while Nongfu Spring added 5.5 per cent.

The recently launched Hang Seng Tech Index of 30 top technology stocks rose 3.4 per cent.

China’s top chip maker SMIC gained 7.1 per cent to HK$18.50, after falling 4.6 per cent on Monday. The company said it was “conducting assessments on the relevant impacts” of the US Commerce Department’s Bureau of Industry and Security’s export restrictions on its business and operations, in a filing to the exchange on Sunday.

Some more aggressive investors may have decided to go bargain hunting for shares of the semiconductor manufacturer, said Everbright’s Wen.

Chinese software company Kingsoft rose 7.7 per cent. FIT Hon Teng, a subsidiary of the world’s largest electronics contract manufacturer Foxconn, gained 7.7 per cent.

Nine constituent stocks of the benchmark Hang Seng Index fell.

Alibaba Group Holding, the owner of the South China Morning Post, eased 0.7 per cent.

Tak Lee Machinery Holdings, which manufactures construction and machinery equipment such as excavators and bulldozers, traded for the first time on the main board after transferring shares from GEM, a market for small to medium-sized companies. It rose 5.4 per cent to 29.5 HK cents from its issue price of 28 HK cents.

Genor Biopharma, a Shanghai-based drugs developer whose lead candidates include therapies for breast and blood cancers, saw its HK$2.5 billion initial public offering in Hong Kong 33 times oversubscribed by institutional investors and 1,247 times by retail investors, the firm said on Tuesday. The shares will start trading on Wednesday.

Markets in China were closed and will reopen on October 9 following the National Day and Mid-Autumn Festival holidays.

Most other Asian markets also rose. Japan’s Nikkei 225 gained 0.5 per cent, while Australia’s S&P/ASX 200 increased 0.4 per cent. South Korea’s Kospi added 0.3 per cent.