China stocks rise as services activity picks up, HK stocks surge

Hong Kong stocks clocked their best one-day performance in three months on Friday, while China stocks also rose as a private survey showed the country's services activity picked up in October. ** China's blue-chip CSI300 Index ended 0.8% higher, while the Shanghai Composite Index gained 0.7%.

Hong Kong stocks clocked their best one-day performance in three months on Friday, while China stocks also rose as a private survey showed the country's services activity picked up in October.

** China's blue-chip CSI300 Index ended 0.8% higher, while the Shanghai Composite Index gained 0.7%. Hong Kong benchmark Hang Seng Index surged 2.6%. ** For the week, the CSI300 Index and the Hang Seng Index added 0.6% and 1.5%, respectively.

** China's services activity growth in October was slightly better than in the previous month, a private-sector survey showed, though new orders rose at their slowest rate in 10 months with employment stagnating as business confidence waned. ** The pace of expansion, however, disappointed some investors as it remained much slower than the average growth in the first half of the year.

** Meanwhile, consumer-related stocks led the gains in China, with liquor shares rising 1.1%. ** Computer stocks also climbed, up 2.3%.

** Market sentiment towards China stocks will stay volatile in the near term unless investors see positive signs such as housing market stabilisation and improvement in Sino-U.S. relationship, analysts at Morgan Stanley said in a note. ** In Hong Kong, the stock rally overnight in New York boosted the sentiment, especially lifting internet stocks.

** Tech stocks rose 3.5% to log their best single-day performance in one month, with Alibaba and Tencent up 3.0% and 5.3%, respectively. ** Shares of China Evergrande opened more than 6% higher before reversing some gains, after news that the troubled developer had proposed a new debt restructuring plan.

** Shares of sportswear group Li Ning jumped 6.6%, after filings showed that Singapore sovereign fund GIC had boosted stake in the company.