2014.09.0102:16:44UTC+00Hong Kong stocks climb on weak China PMI

Hong Kong stocks climbed in the first day of trading session in September with its benchmark index poised for the largest advance for the week as data from Chinese manufacturing data disappointed estimations to bolstering conjectures that the government will be carrying out measures to stimulate the economy.

The Hang Seng Index added 0.5% to 24,868.25, 10:05 AM, Hong Kong time with an intraday low so far of 0.2%. The H-share index or the Hang Seng China Enterprises Index is also up with a 0.2% advance to bring it to 10,990.27.

Chinese PMI came out right after the end of the trading month of August and is at 51.1 as per the National Bureau of Statistics and China Federation of Logistics and Purchasing just short of the 51.2 forecast. Despite disappointing estimates, it is still a stimulant as any result beyond 50 signals expansion in the economy.

Strategist at Delta Asia Securities Ltd., Sam Chi Yung, commented to Bloomberg that the market participants anticipate a form of stimulus to be given by the Chinese government due to the fact that the economy was not as strong as originally hoped. Yung adds that the occurrence of a holiday in the US as of the moment, might cut the turnover in Hong Kong to increase volatility in the market.