Hong Kong Stocks Rise Fourth Day on Global Manufacturing
Shares yesterday climbed the most in three weeks, after China’s official Purchasing Managers’ Index of manufacturing activity climbed to a 16-month high. A gauge of non-manufacturing industries fell to 53.9 in August from 54.1 in July, according to a statement today by the National Bureau of Statistics and the Federation of Logistics and Purchasing. A reading above 50 indicates expansion.
The Hang Seng Index fell 2.1 percent this year through yesterday, the second-worst performer among developed markets tracked by Bloomberg. The gauge traded at 10.6 times estimated earnings yesterday, compared with 14.83 on the Standard & Poor’s 500 Index.
The Hang Seng China Enterprises Index, also known as the H-share index, dropped 18 percent from a Feb. 1 high through yesterday after mainland growth slowed for two quarters. The measure traded at 1.21 times book value, compared with a five-year average of 1.77. China revised its 2012 growth domestic product growth to 7.7 percent from 7.8 percent yesterday, with either figure the lowest expansion since 1999.
Materials and energy companies led declines this year on the Hang Seng Composite Index amid concern weaker expansion in China will sap demand. Utility and information-technology shares were the biggest gainers.
Futures on the S&P 500 rose 0.9 percent. Markets were closed yesterday for the Labor Day holiday. A U.S. index of factory activity is expected to slip to 54 for August, according economists surveyed by Bloomberg. The gauge had readings of 55.4 for July and 50.9 in June.
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