Hong Kong stocks hit a one-month high on Tuesday, in a half-day session before the Lunar New Year holiday, on hopes for a traditional new year rally when the market reopens next week. Hong Kong's blue chip Hang Seng Index ended up 0.37 percent, or 50.63 points, at 13,845.63, adding to Monday's gain of 1.54 percent. The index has gained 1.92 percent over the shortened week to reach its highest close since January 4. The market re-opens on Monday. Turnover was at HK $9.4 billion (US $1.2 billion), compared to HK $9.5 billion at midday on Monday.
"Basically, the sentiment has improved after the rally yesterday, but people are still cautious," said Y.K. Chan, strategist at Phillip Securities.
"I still see a little bit of upside for the market after the holidays, but of course it depends on how other markets do. The sentiment is improving a bit and it's possible to test 14,000 again in February."
Better-than-expected Hong Kong retail figures out late on Monday had little impact.
Global fashion retailer Esprit Holdings Ltd fell 1.52 percent to HK $45.50 as the dollar held near a three-month high against the euro. Esprit makes the bulk of its sales in euro.
Yue Yuen Industrial Holdings Ltd, the world's largest maker of athletic shoes, rose 0.74 percent to HK $20.30.
China's biggest personal computer maker, Lenovo Group Ltd, rose 3.37 percent to HK $2.30 as investors continued to weigh the company's results report last Friday.
NWS Holdings Ltd fell 0.85 percent to HK $11.65 after jumping 11.9 percent on Monday after the firm agreed to sell its Hong Kong port assets to Singapore's PSA International Pte for HK $3 billion.