However, market gains capped on downgrade on China's outlook by Fitch, with investors awaiting inflation data to gauge the path of monetary policy in the world's two largest economies.
At closing bell, the benchmark Hang Seng Index was up 311.10 points, or 1.85%, to 17,139.17. The Hang Seng China Enterprises Index added 121.51 points, or 2.06%, to 6,016.83.
Investors are awaiting for the release of the minutes of the Fed's latest monetary policy meeting on Wednesday, which could also shed additional light on officials' thinking on rates. Fed officials are also set to speak in the coming days, including New York Fed President John Williams and Boston President Susan Collins, who will both speak on Thursday.
Ratings agency Fitch downgraded its outlook on Chinas sovereign credit rating to negative from stable due to risks to the country's public finances amid increasing uncertainty in its economy. It also forecast economic growth would slow to 4.5% in 2024. The latest downgrade followed Moody's downgrade warning on China's credit rating in December.
About 61 Hong Kong-listed companies bought back combined HK$4.59 billion of their own stocks last week, with Tencent making the biggest repurchase with a HK$3 billion outlay. E-commerce behemoth Alibaba Group Holding surged 4.9% to HK$73.95 and Tencent Holdings rose 3% to HK$314.20.
Shares of Li Auto added 3.4% to HK$126 and BYD strengthened 2% to HK$211.40 after data from the industry association showed that sales of electric vehicles in China increased 30% in March from a year ago.
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