Hong Kong Shares End Lower After China Factory Report

   By Mia Lamar and Gregor Stuart Hunter 
 

HONG KONG--Hong Kong shares closed lower on Tuesday despite a stronger-than-expected Chinese manufacturing report.

The blue chip Hang Seng Index fell 118.42 points, or 0.5%, to 23,837.07 after trading between 23,825.96 and 24,012.06 during the session. A total of HK$71.6 billion (US$9.24 billion) was traded on the main board, compared with HK$72.35 billion on Monday.

Stocks moved between gains and losses after a preliminary report on Chinese manufacturing activity in September came in better than expected. The "flash" China Manufacturing Purchasing Managers Index from HSBC and Markit rose to 50.5 in September versus a final reading of 50.2 in August.

"Today's slightly better-than-expected PMI provides little reason for cheer," BNP Paribas said. "Pressure on the Chinese authorities to ease policy to shore up growth remains substantial."

In corporate news, shares of China Mobile Ltd. bucked the broader market slump after Goldman Sachs raised its price target on the stock by nearly 20% to HK$110.00.

The bank said it expects the wireless carrier, China's largest, to take market share from state-owned rivals this year thanks to a more attractive slate of smartphones. Shares rose 0.3% to HK$95.10.

Write to Mia Lamar at [e-mail]