Hong Kong stocks on Thursday increased for a seventh straight session after a U.S. jobs report indicated growth in the jobs market, easing worries about a recession.

HSBC Holdings plc made improvements after encoutering losses in the previous session although Alibaba.com slid by 13 percent in heavy trade as some speculated the shares were overvalued.

Hong Kong market rose to about 100 points off the key 30,000 level but was not stable and declined repeatedly.

Hong Kong listed shares in mainland companies gained about 1 percent, 149.87 points to 17790.02 while the benchmark Hang Seng Index closed at about 0.7 percent at 29,558.92.

Alibaba declined by 11.6 percent to HK$ 32.90 following Deutsche Bank statement that the stock's valuation was too high despite excellent growth prospects.

Alibaba's Hong Kong initial public offering is sponsored by Deutsche Bank, which set a 12 month target price of HK$26.70.

Hang Seng Bank stock rose to 5.1 percent at HK$166.9 in active trade as Morgan Stanley upgraded its price target for HSBC Holdings plc in Hong Kong , to HK$200 from HK$160.

Shares for Bank of East Asia rose to 5.3 percent at HK$58.15 and shares for Bank of China in Hong Kong also increased by 5.3 percent to HK$21.7.

The property stocks showed mixed reactions as Cheung Hong Kong (holdings) Ltd declined 2.1 percent to HK$147.7, and Sun Hung Kai Properties fell 3.3 percent to HK$160.6.

HSBC Holdings plc regained 1.8 percent to HK$133.60 against a sharp decline on wednesday with other global financial issues.