Hong Kong shares close sharply higher led by China Mobile
The Hang Seng Index closed up 199.58 points at 20,655.20, off a low of 20,438.36 and a high of 20,712.32. Turnover was 50.35 billion Hong Kong dollars (6.5 billion U.S.).
"Many investors expect both Esprit and Bank of East Asia to report earnings growth of at least 20 percent this week," said Kitty Chan, director at Celestial Asia Securities Holdings.
"This expectation has done a great deal in lifting sentiment," she said.
Among large-caps, China Mobile was up 2.25 at 75.75, HSBC gained 0.80 at 143.70, Hutchison Whampoa was up 0.10 at 80.90 and Swire Pacific up 0.15 at 91.05.
Hang Seng Bank was up 0.60 at 110.20 and BOC Hong Kong was up 0.20 at 20.85.
Chan said gains in the mainland's stock markets encouraged buying of select China stocks and helped provide additional support to the market.
"China Mobile performed very well and this, together with gains in China's stock markets, have encouraged investors to buy select H-shares," she said.
Among China financials, China Construction Bank rose 0.05 at 4.63, ICBC was up 0.01 at 4.56, Bank of China up 0.01 at 3.86 and China Life up 0.15 at 22.95.
Properties traded mixed, but gains by several large developers enabled the sectoral index to finish up 235.77 points or 0.93 percent at 25,484.83.
Cheung Kong was up 1.50 at 106.30 and Sun Hung Kai Properties up 1.40 at 99.15, while Sino Land was down 0.34 at 18.12 and New World Development down 0.34 at 17.56.
Lenovo was suspended from trade pending an announcement.
Ahead of the suspension the stock fell nearly 7 percent to 3.20 on news that IBM is selling 300 million shares of the Chinese PC maker at 3.20-3.30 dollar per share, representing 4.07-6.98 percent discount to the stock's closing price Monday.
PetroChina was down 0.02 at 9.64 and China Unicom down 0.31 at 9.99.
The Hang Seng China Enterprises Index closed up 15.59 points or 0.16 percent at 9,621.15.