Hang Seng advances following HSBC PMI

<p>The Hong Kong Hang Seng looks to close higher today on indications manufacturing may rebound.</p>

The Hong Kong Hang Seng has advanced this morning (October 24th) after an influential purchasing managers' index (PMI) indicated the Chinese factory sector could be due a rebound.

HSBC's PMI for October rallied to 49.1 points, which is up from September's reading of 47.9 points and is the firmest result Chinese manufacturing has seen in three months.

According to the PMI system, as October's first reading is below the benchmark of 50, the industry is still in a state of contraction, however this slowdown is less steep than it was before.

HSBC's PMI is not China's official manufacturing index, but it is still closely-watched as economists claim it offers a broad view of the sector.

Official PMI figures for the world's second-largest economy will be released on November 1st.

At 08:40 BST, the Hong Kong Hang Seng rose by 0.4 per cent to an index value of 21784.8 points.

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