Hong Kong's benchmark index recouped 1.35 percent Tuesday, led by energy and property firms, while the recovery was still overhung by continuing concerns about U.S. economic weakness.
The blue-chip Hang Seng Index rose 305.56 points, or 1.35 percent, Tuesday to close at 22,921.67, with an intraday high of 23,146.44, after Monday's 3.6 percent decline.
Since the start of this year, the benchmark index has declined 17.6 percent. The index is also down 27.5 percent from its record closing high of 31,638 on Oct. 30.
The total Turnover was 67.22 billion HK dollars (8.63 billion U. S. dollars) Tuesday, the lowest full-session trading value since Aug. 14 of 2007, and down from Monday's 76.43 billion HK dollars.
U.S. financial services giant American International Group said overnight Monday it is having difficulty valuing certain assets and received a rebuke from auditors over its internal controls. The announcement raised fresh worries more large U.S. companies are affected by the subprime-mortgage related fallout.
All the four major categories gained ground. The Commerce & Industry added most at 1.76 percent, followed by the Properties at1.48 percent, the Utilities at 1.01 percent, and the Finance at 0.91 percent.
Chinese oil producers led the blue-chip gains Tuesday following a 2 percent rise in crude oil prices in New York overnight. PetroChina rose 2.8 percent to 10.94 HK dollars, while offshore oil producer Cnooc added 2.4 percent to 11.28 HK, and Sinopec gained 1.4 percent to 8.52 HK dollars.
Local property developers also recorded sharp gains after a broad correction last week. Sino Land rose 3.9 percent to 21.40 HK dollars, Hang Lung Properties gained 2.2 percent to 28.15 HK dollars, and Henderson Land was up 2.2 percent at 60.90 HK dollars.
Advertising firm New Media more than doubled to 1.44 HK dollars on its first trading day, up from its initial public offering price of 0.68 HK dollars.