Hong Kong stocks extend gains on China manufacturing activity

Hong Kong stocks extended gains to over 400 points one hour after opening on Monday from its previous close after a private survey indicated that China’s manufacturing activity picked up last month.

The Caixin manufacturing purchasing managers index rose to 50.8 in February from 50.1 a month earlier, Caixin and S&P Global said in a statement on Monday. That is compared to the median forecast of 50.4 by economists. An official gauge of factory activity released Saturday showed a return to expansion in February.

Any reading above 50 signals an expansion of activity, while a figure below signals contraction.

After opening 194 points higher this morning, the benchmark Hang Seng Index has climbed further, rising 427 points, or 1.86 percent, to 23,368 from its previous close.

STAFF REPORTER AND BLOOMBERG