Market watchers said the market could be supported this week by month-end window dressing and the expiration of Hang Seng Index futures.
The Hang Seng Index closed up 4.2 percent at 18,130.6 points on Tuesday, lifted by outperforming mainland names that helped the China Enterprise Index leap 6.4 percent.
Its best single-day gains since May 2009 pulled the Hang Seng out of technically oversold conditions, as strength in stocks most battered recently helped snap a four-day losing streak.
The gap that serves as near-term resistance is one of at least three that formed on the charts after the Hang Seng lost almost 13 percent this month amid a global market rout.
Hong Kong property names could see further weakness. In a note on Wednesday morning, Samsung Securities said average mortgage rates in Hong Kong, which rose to 2.7 percent recently, had not exceeded the market yield of 2.5 percent for large-sized residential properties.
They believe more mortgage rate hikes are possible in the fourth quarter, leading to a drying up of transaction volumes and drops in property prices of 5 percent in the fourth quarter and another 10 percent in 2012.
For most Hong Kong property stocks and the Hang Seng property index , the 50-day moving average has crossed below the 200-day moving average, a bearish technical chart pattern also known as a "death cross," since March this year.
Cheung Kong Holdings was an exception, holding off the "death cross" until June this year.
Elsewhere in Asia, Japan's Nikkei was trading up 0.3 percent at 8,633.5 points, while the Korea Composite Stock Price Index (KOSPI) was trading up 0.4 percent at 1,741.7 points at 0058 GMT.
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Sands China , the Macau unit of billionaire Sheldon Adelson's Las Vegas Sands , has entered into a $3.7 billion term loan and revolving credit facility.
Australian retail-to-coal conglomerate Wesfarmers has agreed to sell its Premier Coal business to China's Yanzhou Coal Mining Company Limited for A$296.8 million ($296 million), the company said in a statement on Wednesday.
GOME Electrical Appliances Holding Ltd , China's No.2 appliances distributor, said on Tuesday it had entered into a property joint venture as it pushes to expand its footprint in property development and investment in the mainland.