Investors are awaiting the outcome of a Fed rate-setting meeting on November 1, the futures expiry on Friday and the highly-anticipated trading debut of China Construction Bank on Thursday, the biggest China overseas listing ever, and the world's largest IPO in four years.
Hong Kong's blue chip Hang Seng Index closed up 0.16 percent, or 22.53 points, at 14,424.88. Turnover was at HK$16.4 billion S$2.1 billion), compared to HK$16.2 billion on Monday.
The Hang Seng, which has fallen 4.75 percent over the last month, is likely to trade between 14,300 and 14,600 points until next month, with key resistance at the 14,700 level, traders said.
Shares in China Construction Bank traded up to 1 percent above their IPO price in the grey market on Tuesday, an indication that the $8 billion liasing could make a subdued Hong Kong market debut on Thursday. "I don't think CCB is going to go bursting upwards, because it's already fully priced," said Howard Gorges, director at South China Brokerage.
Investor concern over the risk of a serious outbreak of bird flu will also continue to weigh on the Hang Seng for the rest of the month, traders said.
China has reported another outbreak of bird flu in geese in eastern province of Anhui, a United Nations official said on Tuesday.
The US Federal Reserve is due to meet next week to set interest rates among growing expectations that rates will continue to rise to combat surging inflation.
Hong Kong typically follows US rate moves because its currency is pegged to the US dollar. China cement maker Anhui Conch Cement Co Ltd rose 2.48 percent to HK$8.25 after it said on Tuesday its third-quarter unedited net profit fell 9.4 percent, hit by government cooling measures aimed at the building industry.
The company also said it expected its net profit for 2005 to be at least 50 percent less than the previous year due to government measures to cool rapid growth in the economy and the cement industry.
China Shipping Development Co Ltd, the country's biggest coastal energy shipper, fell 2.59 percent to HK$5.65 after it said on Tuesday its unedited net profit rose 17.8 percent year on year in the third quarter of 2005.
Shares in mobile phone carrier New World Mobile soared 20.83 percent to HK$2.90 after a local newspaper reported its parent, New World Development Co Ltd, was in talks to merge it with Hong Kong carrier CSL, which is controlled by Australia's Telstra Corp.
New World Development shares fell 1.05 percent to HK$9.45. Shares in Aluminium Corp of China Ltd (Chalice) the world's second-largest alumna producer, rose 1.61 percent to HK$4.725 after it said on Monday its alumnae output rose 12 percent year-on-year in the third quarter to 1.81 million tonnes.