Hong Kong shares have closed 0.86 per cent higher following another record close on Wall Street and data showing Chinese inflation accelerated in May.
The benchmark Hang Seng Index added 198.27 points on Tuesday to 23,315.74 on turnover of HK$60.17 billion ($A8.40 billion).
US shares provided a strong lead, extending gains from Friday, after China posted impressive export data and Japan said its economy grew faster than initially thought in the first quarter of the year.
The Dow rose 0.11 per cent to its third straight record close, while the S&P 500 inched up 0.09 per cent, hitting an all-time high for the fourth straight session. The Nasdaq added 0.34 per cent.
On Tuesday there was even more good news, with Chinese inflation data showing a 2.5 per cent surge in May, in line with expectations and the highest since January.
The figure is also much stronger than the 1.8 per cent recorded the month before, alleviating fears earlier in the year that the country will slip into deflation.
Cathay Pacific Airways rose 0.28 per cent to $HK14.54, China Mobile put on 1.12 per cent to $76.75, HSBC edged up 0.31 per cent to $81.70 and Ping An Insurance of China was up 0.67 per cent at $HK60.50
In China the benchmark Shanghai Composite Index rose 1.08 per cent, or 22.03 points, to 2,052.53 on turnover of 65.4 billion yuan ($A11.36 billion).
The Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 1.39 per cent, or 14.57 points, to 1,063.88 on turnover of 92.4 billion yuan.
Adding to buying sentiment, the People's Bank of China late Monday announced details of a cut in the amount of cash certain lenders must keep with the central bank - the reserve requirement ratio - as part of a limited stimulus to boost spending.
"The targeted (reserve ratio) cut will loosen up liquidity and help facilitate an economic recovery, so it lifted investor confidence," Zheshang Securities analyst Zhang Yanbing said.
Separately, the stock regulator on Monday resumed approvals of initial public offerings (IPOs) by giving 10 firms the green light for domestic listings after a four-month halt.
"The announcement regarding IPOs eliminated earlier uncertainties over the timing of the resumption, so it had limited impact on the market today," Zhang added.
Fruit companies rose after the inflation data showed rising prices for produce. Xinjiang Korla Pear gained 2.67 per cent to 8.85 yuan, while Guannong Fruit & Antler Group rose 1.31 per cent to 15.45 yuan.
Banks advanced on the planned reserve ratio cut. ICBC jumped 1.91 per cent to 3.73 yuan while Agricultural Bank of China increased 1.19 per cent to 2.55 yuan.
Among other firms Air China rose 1.53 per cent to 3.31 yuan and SAIC Motor added 1.68 per cent to 15.10 yuan.
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