ASIA MARKETS: Hong Kong Stocks Climb To Three-year High

By Laura He, MarketWatch

HONG KONG (MarketWatch) -- Hong Kong stocks hit their best close in more than three years Thursday, after a preliminary reading of Chinese manufacturing sector rose to an 18-month high, adding to signs that the economy is stabilizing.

The Hang Seng Index broke the psychologically important 24,000 mark, ending up 0.7% at 24,141.50. It was the highest settlement since early April 2011.

The HSBC preliminary manufacturing Purchasing Managers' Index rose to 52 in July from a final reading of 50.7 in June, indicating expansion in China's factory activities for the second consecutive month, according to data released on Thursday.

In Hong Kong markets, mainland property developer continued to lead gains, with Country Garden Holdings surging 7.4%, Poly Property Group spiking 6.4%, Evergrande Real Estate Group and Shimao Property Holdings jumping 3.8% and 3.6%, respectively.

Over on the mainland, the Shanghai Composite Index advanced 1.3% to 2,105.06, the highest closing level in more than three months, bolstered by the strong flash PMI data.

In other Asian markets, Australian stocks gained for the seventh straight session, with the S&P/ASX 200 up 0.2%.

However, Japanese stocks slipped, as the benchmark Nikkei Average closed down 0.3% and the broader Topix index edged lower by 0.2%. The yen (USDJPY), meanwhile, stayed flat at Yen101.533 per dollar.

Elsewhere, South Korea's Kospi Composite Index dipped 0.1%.

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