China stocks rebounded after bonds issued by debt-strapped Spain and Mainland markets rose sharply. Late profit-taking trimmed some gains in continued sluggish trading.
Hong Kong's Hang Seng Index opened 100 points higher, but worries over possible fund raising by Chinese banks helped drive the index sharply lower in the late afternoon.
Hong Kong opened lower due to pessimism about the U.S. economic recovery and fell below resistance at the 250 day moving average as investors dumped Chinese private companies.
A report that the IMF would lend 600 billion Euros to debt-plagued Italy helped push the Hong Kong market sharply higher, although turnover remained weak.
Hong Kong blue chips traded 100 points higher early in the day, but a decline in Mainland markets capped gains. Funds flowed into insurance companies, but automakers retreated.
Hong Kong blue chips opened higher on speculation there would be progress in Greek debt negotiations and broke through the 21,000 resistance level in the afternoon following a rally in Shanghai.
China stocks are stuck in a narrow range for now, pulled up by prospects of credit easing in China and down by an unending flow of bad news about Europe's debt crisis.
China stocks opened lower and continued to fall in Hong Kong Monday, weighed down by worry over European debt and possible failure of the U.S. deficit-reduction Super Committee.
Worry over the struggling Euro Zone economy and rising oil prices dragged Hong Kong down despite a modest gain on Mainland markets. Newly listed stocks performed poorly.
Hong Kong plunged at mid-morning on profit-taking after the recent rally, but climbed back into positive territory in the afternoon as Mainland markets posted gains.
Hong Kong opened higher with futures gaining 200 points, but ended with losses after late weakness in Chinese and other Asian markets triggered profit-taking.
China and Hong Kong stocks tumbled after the HSBC preliminary manufacturing PMI fell sharply to 48.0, indicating slowing growth in China. Resources stocks posted steep losses.
Hong Kong followed U.S. markets lower in very thin turnover, slipping below its 10-day moving average. Hong Kong's Hang Seng Index sank 1.8 percent, and the index of Chinese companies fell 2.7 percent.