HONG KONG (Nikkei Markets) -- Hong Kong shares advanced on Tuesday, aided by overnight gains on Wall Street and ample liquidity in the financial system, although worries over the spread of the coronavirus lingered.
The Hang Seng Index rose 1.3% to 27,583.02 by noon. Geely Automobile Holdings jumped 6.1% after the carmaker said it is in preliminary talks with Sweden-based automaker Volvo Car AB to combine businesses that could realize synergies in cost structure and development of new technologies. Among heavyweights, Tencent Holdings added 1.7%, while China Construction Bank rose 2.4%.
All three major U.S. equity indexes advanced overnight, with the S&P 500 and the Nasdaq Composite closing at record highs. Markets in the rest of the region traded higher on Tuesday, while futures pointed to a stronger opening on Wall Street. The gains came even as China said the death toll from the coronavirus topped 1,000 as of Monday and the number of confirmed cases of the infection topped 42,000.
"Worries over economic growth are still with us, but short-term liquidity is really abundant," said Alan Li, portfolio manager at Atta Capital. "Of course, some of it will flow into Hong Kong through the stock connect program."
The People's Bank of China reportedly injected 100 billion yuan ($14.3 billion) in liquidity into the financial system via reverse repurchase agreements on Tuesday.
Turnover on the stock exchange's main board was at 63.47 billion Hong Kong dollars ($8.17 billion) by the midday break, higher than usual for the time of day.
In the mainland, the Shanghai Composite Index climbed 0.3%, while the yuan traded onshore added 0.1% against the dollar to 6.9774.
Cosmetics retailer Sa Sa International Holdings slid 3.4% after saying it plans to temporarily close 20 of its stores in Hong Kong and Macao in response to the virus outbreak in the region.
Electric carmaker BYD slipped 2.8% following a 42.7% decline in total sales volume for January.
NagaCorp jumped 9.6% after the Cambodia-based casino operator reported a 33% surge in 2019 net profit and said revenue rose 20% from a year ago.
Yestar Healthcare Holdings surged 16.2% after saying it has developed disinfection consumables products that support the combat of the coronavirus outbreak.
Poly Property Group rose 1.3% after reporting a 30% increase in January contracted sales.
China Longyuan Power Group fell 1.7% after reporting a 6.7% decrease in January power generation.
-- Benny Kung