HONG KONG: Hong Kong shares ended 2.34 percent up on Thursday, a sixth straight rally as traders were lifted by hopes of a solution to the eurozone crisis, while Shanghai also ended in positive territory.
The benchmark Hang Seng Index added 428.35 points to end at 18,757.81 on turnover of HK$88.39 billion ($11.36 billion).
The index, which sank to a two-and-a-half-year low last week, has added more than 15 percent in the past six sessions.
But the financial hub's benchmark index is still down 16 percent since August, and analysts cautioned against putting too much optimism in the market's latest rally.
"I don't think it is the beginning of a bull market," Alvin Cheung, associate director at Prudential Brokerage Ltd, told Dow Jones Newswires.
"The gains we saw today are largely the result of a technical rebound and short covering following the heavy losses on the index in recent weeks."
Chinese shares closed up 0.78 percent, extending Wednesday's surge of more than 3.0 percent, as investors await key inflation data.
The Shanghai Composite Index, which covers both A and B shares, gained 18.79 points to 2,438.79 on turnover of 82.2 billion yuan ($12.9 billion).
The rise came despite data showing the politically sensitive trade surplus contracted to $14.51 billion in September from $17.8 billion the previous month.
The figures, highlighting falling demand in the United States and Europe, will likely stoke fears over China's vast manufacturing sector, which employs millions of workers and has been contracting for several months.
In Hong Kong, Esprit Holdings rose 15.7 percent to HK$11.78, the best-performing blue-chip stock of the day, as the clothing retailer clawed back a 7.5 percent drop off Wednesday.
The tumble came after a media report said the company exaggerated the number of its mainland Chinese outlets on its website, a claim it denied late Wednesday saying the website information was out of date.
Property developers also rose with China Resources Land jumping 11.9 percent to HK$10.72 and China Overseas Land rising 7.7 percent at HK$14.20, while Cheung Kong Holdings, controlled by Hong Kong's richest man Li Ka-shing, rose 3.07 percent top HK$95.75.
Asia-focused banking giant HSBC climbed 3.27 percent to HK$64.65 per share.
The gains in Hong Kong and mainland China mirrored rises in other Asian markets, as regional bourses took a lead from Wall Street and hopes that eurozone leaders will be able to hammer out a solution to the region's debt crisis.
Market sentiment was lifted by news that Slovakia's political parties had agreed to hold a new vote this week that could see the expansion of the eurozone emergency fund approved by Friday.
Lawmakers in the Eastern European nation on Tuesday blocked its passage, holding up EU leaders' plans to revamp the European Financial Stability Facility (EFSF), a tool created last year to shore up debt-laden economies.
Slovakia is the last of the 17 eurozone members to ratify the deal.
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