The Hang Seng Index added 0.2 per cent to 19,254.80 at the local noon trading break, after losing as much as 0.4 per cent during the morning session. The Tech Index added 0.6 per cent while the Shanghai Composite Index added 0.2 per cent.
Limiting gains, gaming firm NetEase lost 2.9 per cent to HK$153.90 and food delivery platform Meituan declined 0.6 per cent to HK$120.70 before their earnings announcements.
“The sustainability of the current rally will be decided by how quickly the improved sentiment translates into stronger earnings,” BNP Paribas strategists including Jason Lui said in a note on Tuesday. The market is likely to see a gradual upside in the near term, they added.
The city’s benchmark index has declined 1.2 per cent so far this week after a 4-week winning streak, as technical analysts said charts indicated the rally has taken the market into an overbought zone while sentiment also cooled on the back of patchy corporate earnings.
Among other major losers, Tencent retreated as much as 1.8 per cent after it suspended the blockbuster game Dungeon & Fighter Mobile hours after its launch, due to server issues. JD.com lost 1.9 per cent to HK$129.50 after the company announced a US$1.75 billion of convertible bonds sales which has the potential to dilute earnings.
Other key Asian markets were mixed. Australia’s S&P/ASX 200 added by 0.1 per cent, and South Korea’s Kospi gained 0.2 per cent, while Japan’s Nikkei 225 declined 0.6 per cent.