HK Index Up 1.9 Percent, Led by Property

The blue chip Hang Seng Index rose 445.61 points, or 1.9 percent, to 23,714.75.

Analysts said the benchmark index is not likely to rise substantially in the near future, as the continued volatility in global markets keeps many investors on the sidelines. The index is still down 15 percent since the beginning of the year.

Turnover totaled HK$68.68 billion (US$8.81 billion; euro5.93 billion), up slightly from HK$63.70 billion Monday, but still among the lowest daily volumes since August.

"Low trading volume is not a good sign. There (seems to be) no support even though stocks are now trading at attractive valuations," said Linus Yip, a strategist at First Shanghai Securities.

Traders said the local market may get a boost next week ahead of the National People's Congress an annual meeting of legislators in China on expectations of new policy initiatives aimed at maintaining the health of the Chinese economy.

"Right now there are no signs of large inflows to keep a sustained rise in the benchmark index," said Kingston Lin, associate director at Prudential Brokerage. "That may change with next month's NPC meetings, which could offer some good news to the market."

Property developers led the blue-chip gains Tuesday on expectations that the government would unveil income and property tax rebates when Financial Secretary John Tsang presents his maiden budget Wednesday.

Sino Land jumped 6.6 percent to HK$20.60, Wharf Holdings rose 6.5 percent to HK$40.15, Sun Hung Kai Properties added 4.1 percent to HK$135.70 and Cheung Kong gained 2.1 percent to HK$114.40.

China-related shares also rose, recovering from declines earlier in the session.