HONG KONG: Hong Kong shares gained 1.17 percent Friday, a third straight increase, on the back of optimism over the global economy. The benchmark Hang Seng Index gained 274.38 points to 23,801.90 on turnover of HK$91.51 billion ($11.76 billion).
Traders took a lead from Chinese data China showing manufacturing rebounding in the world's second biggest economy.
The mainland's official Purchasing Managers Index (PMI) rose to 53.4 in March from 52.2 in February, while an index from HSBC was up at 51.8 from 51.7. A reading above 50 indicates expansion while one below 50 points to contraction.
That came on top of strong jobs data in the United States suggesting the economy there is on the right track to recovery. Ping An Insurance was the day's best performer, rising 4.8 percent to HK$82.60 after reporting Tuesday its 2010 net profit rose 25 percent.
The ongoing unrest in the oil-rich Middle East and Libya helped commodities firms.
Offshore oil and gas producer CNOOC was up 4.6 percent at HK$20.50 and PetroChina, China's largest oil producer, gained 2.0 percent to HK$12.02. Foxconn International fell 2.4 percent to HK$4.56, extending Thursday's 4.5 percent fall following weaker-than-expected results.
Chinese shares closed up 1.34 percent. The Shanghai Composite Index, which covers both A and B shares, was up 39.30 points at 2,967.41 on turnover of 125.7 billion yuan ($19.1 billion).
"The rebound in the leading indicator helped to ease concerns over potential stagflation in the economy, though whether the rebound in the PMI can be sustained has to be watched closely," Huatai Securities analyst Zhou Lin told Dow Jones Newswires.
Coal miners led the gains on hopes that high oil prices would push up the price of coal.
Beijing Haohua Energy Resource rose by the 10 percent daily limit to 53.68 yuan and Yanzhou Coal Mining gained 7.2 percent to 36.97 yuan. Banks also rose as their valuations remain at a relatively low level compared with the broader market. Industrial Bank gained 5.5 percent to 30.30 yuan and China Minsheng Banking rose 3.9 percent to 5.81 yuan.
China Merchants Bank advanced 1.7 percent to 14.33 yuan after the lender said Thursday its 2010 net profit rose 41 percent to 25.77 billion yuan.
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