Value Hunters Push Asia Higher

Lower fuel prices cheered investors of Cathay Pacific(CPCAY Quote), which jumped 2.3%, to HK$20.45. After selling off nearly 20% in November, as the price of fuel declined this week Hong Kong's leading air carrier gained popularity among Chinese bargain hunters.

Still, Lee says that stocks in Hong Kong continue to appear "relatively expensive" to foreign investors right now, and that markets may continue to consolidate. She points out that curtails by the Chinese government on money laundering between China and Hong Kong are trapping liquidity on the mainland right now, too.

"Some banks in Shenzhen are now trying to stop people from drawing Hong Kong dollars, because people have been 'backpacking' the currency through to Hong Kong and engaging in investment activities," says Lee.

Financials in Hong Kong were flat but in negative territory, with China Life Insurance(LFC Quote) off 0.12%, to HK$42.40, and HSBC Holdings(HBC Quote) down 0.15%, to HK$132.