"Pragmatic investors are also looking at China, as it has been more proactive recently in implementing stimulus, and Chinese officials are managing the situation well enough," Tom Kaan, director equity sales at Louis Capital in Hong Kong, told the Associated Press.
He added, however, that light trading volumes represented still-elevated levels of investor caution.
"We're not seeing massive buying interest, people are looking at defensive stocks—conservative investing, but without missing the run if it does come," he said.
Meanwhile Hong Kong bourse turnover slipped for the third session in a row and neared the lowest this year, with investors eyeing the U.S. Fed's policy decision later in the day and the HSBC China flash PMI for June on Thursday. Gains on the Hang Seng Index were capped at the 200-day moving average at about 19,591, a level that also limited Monday's gains.
—Associated Press contributed to this report.
Page 2 of 2 | Prev Page