Also, the impact of weak US job figures is being offset by stimulus hopes.

"Abundant liquidity continues to support the Hong Kong stock index," said Ben Kwong Man-bun, KGI Asia chief operating officer.

Investors are waiting for the Obama administration to implement new measures, Kwong said.

Group of 20 policymakers have agreed it is too early to withdraw economic stimulus measures as global recovery is still weak. The Dow Jones Industrial Average rose 17 points on Friday despite the US jobless rate hitting a 26-year high of 10.2 percent.

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Kwong expects the Hang Seng Index to open flat today.

He expects the benchmark to hover between 21,500 and 22,200 points this week. For the week ended Friday, the Hang Seng was up 0.4 percent to 21,829.72.

First Shanghai Securities strategist Linus Yip Sheung-chi expects the index to open 50 to 100 points higher today as investors closely monitor mainland financial data for direction.

"Despite the volatile index, investment sentiment remains very positive," Yip said.

Investors are focussing on trading smaller stocks, which are more sensitive to news and speculation, Yip said.

He estimates turnover for the Hang Seng Index to remain between HK$60 billion and HK$70 billion this week.

The mainland is set to announce macroeconomic data this week, including money supply, consumption and production indexes.

"Hong Kong investors would act accordingly," Yip said.

US President Barack Obama's first state visit to China is also expected to offer bilateral policy directions between the two countries, Yip added.