Hong Kong shares closed higher on Tuesday to advance for a fourth straight day, tracking gains in European markets after a German court said it would rule on the legality of the European bailout fund as scheduled on Wednesday. The Hang Seng Index reversed midday losses to end up 0.2 percent, but turnover in Hong Kong sank 25 percent from Monday to slip below its 20-day moving average for the first time in five sessions.
"Hong Kong property developers are the top choice today, with investors unwilling to push the rally in Chinese stocks any more today," said Jackson Wong, Tanrich Securities' vice-president for equity sales. Among Hong Kong developers, Sun Hung Kai Properties rose 1.3 percent, while Henderson Land gained 1.7 percent.
Mainland Chinese markets snapped a three-day winning streak, with infrastructure-related plays among the weakest after a rally in the last three sessions fuelled by reports that Beijing had approved projects worth $150 billion. The CSI300 Index of the top Shanghai and Shenzhen listings fell 0.6 percent, while the Shanghai Composite Index lost 0.7 percent. The China Enterprises Index of the top Chinese listings in Hong Kong slipped 0.2 percent.
Anhui Conch Cement, which surged 15.5 percent in Shanghai in the three days before Tuesday, shed 3.1 percent on Tuesday. It lost 1.1 percent in Hong Kong after jumping 12.5 percent in the last three sessions. Chinese excavator maker Sany Heavy Industry shed 1.5 percent in Shanghai, while Changsha Zoomlion shed 1.7 percent in Shenzhen and 4.5 percent in Hong Kong. The Chinese property sector was hurt by a local media report that the city of Nanjing restricted price increases to 5 percent. The Shanghai property sub-index slipped 1.1 percent, with Poly Real Estate down 1.5 percent.