Hong Kong stocks are seen extending a 10 day winning streak on the back of strong fund buying and a bright economic outlook, although markets will keep an eye on a slew of US corporate results later in the week.
"US and European investors are enthusiastic toward investment in greater China. There will not be any major setback in the market." said Joseph Lau, director at Tai Fook Asset Management.
The blue chip Hang Seng Index closed up 1.38 percent on Friday at 13,385.80 and registered a strong 4.56 percent gain for the week.
Traders see the Hang Seng rising as high as 14,500 before major profit taking sets in, with property and other blue chips in the limelight on rotational buying.
Property shares may receive a further boost early in the week after the government announced after the market close on Friday it would resume land sales on a limited basis on mostly residential plots.
"It's good news for property prices, you'll find developers pouncing on it pretty aggressively," said John Saunders, property analyst with CLSA.
Analysts say property prices could rise as much as 10 percent this year after a six year slump which has seen home values fall by as much as 65 percent.
But investors will also pay close attention to US company results and Wall Street, after a weak monthly jobs report on Friday dented optimism over the pace of a global economic recovery.
Hong Kong stocks often move in tandem with their US counterparts as the United States is the city's second largest export market and the world's largest economy.
The blue chip Dow Jones industrial average shed 1.26 percent on Friday to 10,458.89.
US markets this week will be watching quarterly results of top-tier companies ranging from General Electric Co. to Intel Corp for indications whether a recovery is on track.
Closer to home, Hong Kong will also keep an eye on whether the killer Sars virus is spreading after one case was confirmed in southern China last week.
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