Hong Kong's benchmark Hang Seng Index rose on Monday thanks to a firmer tone in overseas markets on hopes Greece would be able to avoid defaulting on its debt, with insurers and resources stocks leading the surge. The Hang Seng index jumped 1.2 percent to 27,080.85 points in its biggest daily gain in over a week. The China Enterprises Index, which tracks Hong Kong-listed mainland companies, climbed 1.5 percent, to 13,383.68 points.
"Investors put their focus back on the Greece crisis again in the afternoon as Europe's markets rose on hope of some progress in resolving the debt crisis," said Steven Leung, a director at UOB Kay Hian in Hong Kong. China Life's Hong Kong shares rose nearly 3 percent, Bank of Communications was up 2.9 percent and China Resources Power jumped 2.2 percent.
Brokers said that sentiment also got a boost from hopes that political tensions in the city would ease after lawmakers vetoed a Beijing-backed electoral reform package last week. Chief Executive Leung Chun-ying said on Friday he would bring a series of economic initiatives to lawmakers this week, and called for their support. Even as the overall mood showed improvement, brokers noted some underlying caution ahead of the reopening of mainland China markets on Tuesday following a plunge on Friday. Mainland markets were closed on Monday for a public holiday.