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.
Learn about CFD trading strategies and the stock market at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.