The Hang Seng Index rose 0.1% to 16,737.12 at Monday's close, after falling as much as 0.5% in morning trading. The high-tech index rose 1.3%, and the Shanghai Composite Index rose 1%.
E-commerce giant JD.com rose 3.3% to HK$108, while Tencent rose 2.2% to HK$290. EV maker BYD rose 3.9% to HK$218.40, while peer Xpeng rose 7.1% to HK$40.50 on its mass-market plans. Wuxi Aptech jumped 4% to HK$42.65 ahead of its earnings release scheduled for later today.
Despite accelerated easing of real estate policy, real estate investment continued to struggle, falling by 9% in January and February. Hong Kong-listed mainland developers fell, with Longfor falling 4.6% to HK$10.06 and China Resources Land falling 2% to HK$24.70.
“Economic momentum remains weak in the first two months of this year, and additional stimulus is needed,” said Lin Song, chief economist for Greater China at ING.
“Even if economic conditions are bad, a meaningful recovery is still possible,” said Lloyd Chan, investment strategist at Standard Chartered. He added that targeted fiscal and monetary policies are likely to help limit downside risks.
Elsewhere, investors have effectively ruled out a U.S. interest rate cut in May ahead of the Fed's March decision, which gives a 99 percent chance of holding rates steady. Markets now price in a 94% chance of interest rate stability, compared with 70% a month ago, according to CME Group data.
Asian stocks generally rose. Japan's Nikkei Stock Average rose 2.7% on expectations that the central bank will soon end its negative interest rate policy. South Korea's Kospi rose 0.7%, while Australia's S&P/ASX 200 was flat.