HONH KONG: Hong Kong stocks rose Thursday despite signs that manufacturing activity in China had fallen to a one-year low, indicating continued weakness in the economy.
The Hang Seng Index was up 0.9% to 28179.93. The index climbed above 28000 intraday Wednesday but failed to close above it. Prior to Thursday it was up 12% month to date, mostly fueled by expectations of more buying from mainland investors and further support for the economy from Beijing.
On Thursday, a preliminary reading of Chinese manufacturing activity came in at 49.2 in April, compared with a final reading of 49.6 in March, according to HSBC Holdings PLC. Signs of weakness in the economy add to hope that Beijing will take further stimulus measures.
The Shanghai Composite Index traded near flat at 4404.08. Shanghai shares gained 17% this month through Wednesday’s close.
