Hong Kong's stock market soared more than 14 percent Tuesday, rebounding from sharp falls in the past five sessions to post its biggest single-day percentage gain since the Asian financial crisis more than a decade ago.
The blue-chip Hang Seng Index rocketed 1,580.45 points, or 14.4 percent, to close at 12,596.29, marking its largest percentage rise since October 1997.
"We haven't seen this kind of movement for years," said Matthew Kwok, head of research at Tanrich Securities. "We were quite a bit oversold."
The market had wilted in the past week, falling about 27 percent over five days and tumbling 12.7 percent on Monday alone, as world equities sold off on deepening fears of a global recession and depressed corporate profits.
But a regional rebound coupled with a weakening yen and bargain prices unleashed a wave of buying Tuesday that sent shares across most industries higher.
Despite Tuesday's upswing, the benchmark is down more than 60 percent for the year.
While hesitant to call a bottom, some analysts said the extreme volatility that's characterized trading in Hong Kong and other markets may start to taper some in the coming days.
"There was some hope that we could be turning a corner, that the worst is being put behind us," said D. Gorton, research analyst at Louis Capital Markets in Hong Kong. "I would say going forward there would be volatility, but it's not going to be on the scale we've seen in the last few months."
Heavyweight lender HSBC Holdings surged 20 percent to close at HK$90 after going into a free-fall in recent days.
China Construction Bank soared more than 23 percent to HK$3.23, and Industrial & Commercial Bank of China Ltd, or ICBC, gained 16.4 percent to HK$3.260.
Conglomerate Hutchison Whampoa rose 11 percent to HK$38.8.
Leading Hong Kong developer Sun Hung Kai gained 9.7 percent to HK$61.5, and Cheung Kong advanced 16.7 percent to HK$61.5.
Among other top gainers, Hong Kong's flagship airline Cathay Pacific surged more than 30 percent to HK$9.2. China Mobile, the world's largest mobile telephone compnay by subscribers, added almost 12.5 percent to HK$60.5
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