Hong Kong - Hong Kong stocks continued their rebound Wednesday after a volatile two days which saw the Hang Seng's Index record its biggest loss and biggest gain in more than 10 years.

The blue-chip index ended the morning's trading 171 points, or 1.4 per cent higher, rising to 12,767 points.

The increase continued the rebound which began Tuesday when bargain hunters pushed the index up by 14.35 per cent, its biggest rally in more than 10 years.

This followed the huge sell-off Monday when shares plummeted by 12.7 per cent, their biggest one-day fall since the Asian economic crisis in October 1997.

However, analysts said sentiment was still fragile and warned that more volatility could follow as the economic crisis continued.

The Hang Seng Index has lost two third of its value since October last year when it reached a peak of almost 32,000 points. (dpa)