Hong Kong's benchmark Hang Seng Index rose 1.21 per cent, or 319.00 points, to close at 26,675.98.
Investors built on Monday's modest gains as they track developments in the outbreak, with little major reaction to news of the first virus-linked death in the city.
Shanghai stocks rallied more than one per cent Tuesday, recovering some of the previous day's rout, boosted by bargain-buying and a huge injection of cash into the financial system by China's central bank.
The benchmark Shanghai Composite Index jumped 1.34 per cent, or 36.68 points, to 2,783.29, while the Shenzhen Composite Index - which tracks stocks on China's second exchange - climbed 1.80 per cent, or 29.02 points, to 1,638.02.
The Chinese government pumped US$173 billion into the economy on Monday to help stabilise markets, followed by almost US$60 billion more on Tuesday.