Hong Kong stocks are seen rising this week, boosted by high expectations for earnings from Bank of East Asia, which kicks off the latest reporting season.
But weak US markets, hurt by disappointing earnings and high oil prices, may limit gains as investors eye further volatility on Wall Street.
Bank of East Asia Ltd, Hong Kong's fifth-largest lender, is expected to post strong interim earnings on Friday due to low provision charges.
The results will also give a taste of earnings ahead from global bank and Hang Seng heavyweight HSBC Holdings Plc, and its local unit Hang Seng Bank Ltd.
A slew of smaller firms will also provide an early peek into the health of regional earnings including operators of the Peninsula hotel chain Hongkong and Shanghai Hotels Ltd, TV maker Skyworth Digital Holdings Ltd and chip designer Solomon Systech International Ltd along with Internet firm TOM Online Inc.
Traders see the benchmark Hang Seng Index, which is heavily weighted toward banks and property, trading as high as 12,600.
The Hang Seng gained 2.44 percent last week, closing at 12,352.09 on Friday.
Property shares, such as Sun Hung Kai Properties and property-heavy conglomerate Wharf Holdings may gain further ground.
"Property has recorded strong home sales over the past few weeks," said Lionel Kwok, chief investment officer at BOCI-Prudential Asset Management
Investment bank J.P. Morgan expects office rents in prime business districts to rise by up to 40 percent this year due to strong demand and limited supply.
Investors are also watching property companies that rent heavily sought after retail space such as Causeway Bay landlord Hysan Development Co Ltd.
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