Hong Kong stocks rose for a second day as traders picked up bargains amid stronger efforts to contain record Covid-19 infections in the city while governments attempted to defuse tensions surrounding Russia and Ukraine. The Hang Seng Index advanced 0.3 per cent to 24,792.77 at the close, erasing an intraday loss of as much as 0.8 per cent. The Tech Index added 0.8 per cent while the Shanghai Composite Index gained 0.1 per cent. WuXi Biologics, hotpot restaurant chain Haidilao and electric vehicle maker BYD climbed at least 2.7 per cent to lead index gainers. Hang Seng members trade at about 10 times price-earnings ratio, the cheapest next to Brazil among major global indices, according to Bloomberg data. The benchmark has lost 20 per cent, while the Tech Index slumped 48 per cent in a trillion-dollar rout since both gauges started to fall from their highs on this day a year ago. “The valuations of Hong Kong stocks, particularly tech stocks, are at a low level currently,” said Chen Ping, a fund manager at HSBC Jintrust Fund Management in Shanghai. “We expect policies not to get tougher on the backdrop of stabilising growth. Policy loosening will spur expansion of the valuations.” Stocks advanced as Hong Kong’s government raised efforts to combat infections, including enlisting help from top developers for rooms to isolate affected cases and readying the population for mass testing from next month. Daily infections rose to a record 4,285 on Wednesday. Elsewhere, the US said Russia has added troops to its border with Ukraine, rejecting Moscow’s claim that it has pulled them in favour of a diplomatic solution. Demand for safe haven assets returned, with gold futures approaching an eight-month high. Traders are also keeping a close eye on how fast the Federal Reserve will raise borrowing costs. The latest minutes showed that the Fed would start to lift interest rates soon and were on alert for persistent price pressure after inflation accelerated at the fastest in four decades last month.