Hong Kong Stocks Advance After China Non-Manufacturing Report

Kontak Perkasa - Bloomberg (04/11) -- Hong Kong stocks advanced, with the benchmark index extending last week’s gains, after a gauge of China’s non-manufacturing industries rose to the highest level this year. The Hang Seng Index added 0.4 percent to 23,333.85 as of 9:32 a.m. in Hong Kong. The Hang Seng China Enterprises Index of mainland shares listed in the city climbed 0.5 percent to 10,735.96, heading for its highest close in more than six weeks. The Hang Seng Index jumped 17 percent from this year’s low on June 24 through last week as data from China signaled the world’s second-largest economy is stabilizing. The nation’s non-manufacturing Purchasing Managers’ Index climbed to 56.3 in October from 55.4 in September, a government report showed yesterday. The increase follows better-than-estimated readings for two manufacturing indexes last week. The Hang Seng Index, on which gains this year have been led by gaming shares and China’s biggest Internet company, traded at 11.1 times estimated earnings on Nov. 1, compared with 15.9 for the Standard & Poor’s 500 Index. The S&P 500 rose 0.1 percent last week as positive corporate results overshadowed concern that improving economic data may prompt the Federal Reserve to trim stimulus as soon as next month. Of the index members that have reported quarterly earnings this season, 75 percent have posted higher profit than analysts estimated, data compiled by Bloomberg show. Futures on the gauge added 0.2 percent today. China’s top party officials will meet in Beijing from Nov. 9-12 to map out a blueprint for reform as the country heads for its slowest growth in more than two decades.