A woman walks past a display board showing the Hang Seng Index on Tuesday. Laurent Fievet / AFP

Hang Seng Index (HSI) rebounded on Tuesday from a two-and-a-half year low amid optimism European leaders will prevent a worsening of the region's sovereign-debt crisis.

The HSI rose 4.15 percent to 18130.55, its biggest gain since May 2009. All but two stocks increased in the 46-member gauge, which tumbled 9.2 percent last week. The Hang Seng China Enterprises Index rose 6.4 percent to 9294.22.

Esprit, which fell 64 percent this month through Monday on plunging profit, jumped 7.2 percent to HK$8.50. Standard Chartered Plc increased 4.7 percent to HK$158.90.

Futures on the Standard & Poor's 500 Index rose 1 percent on Tuesday. In New York, the index climbed 2.3 percent on Monday after a euro-region central bank official said European Central Bank (ECB) policy makers are likely to next week debate restarting their covered-bond purchases along with further measures to ease monetary conditions.

The reintroduction of 12-month loans to banks will also be discussed at the European Central Bank's (ECB) October 6 policy meeting, said the person, who spoke on condition of anonymity because the information is confidential. Interest-rate cuts are likely to be discussed, though they are not on the agenda, the official said. A spokesman for the Frankfurt-based ECB declined to comment.

Cnooc gained 7.7 percent to HK$12.80. PetroChina rose 5.4 percent to HK$9.52. Jiangxi Copper soared 17 percent to HK$14.68, its biggest increase since November 2008.

Luxury retailers rose after James Tien, chairman of the HongKong Tourism Board, said in an e-mail that the city's visitor arrivals from the mainland may increase by as much as 10 percent during the Chinese National Day holiday week starting October 1.

Emperor Watch jumped 8.9 percent to HK$1.10, and Chow Sang Sang Holdings International Ltd surged 13 percent to HK$18.36.

Lenovo Group Ltd surged 11 percent to HK$4.96. It will partner with Compal Electronics Inc to make laptops in China as it looks to boost production capacity, the companies said on Tuesday.

Futures on the HSI advanced 3.7 percent to 18063. The HSI Volatility Index sank 8.8 percent to 39.76.

Bloomberg

(HK Edition 09/28/2011 page2)