China stocks rise after surprising factory activity growth

** The blue-chip CSI300 Index climbed 0.7% by the midday recess, while the Shanghai Composite Index gained 0.4%. ** Hong Kong's benchmark Hang Seng was up 0.8%, and the Hang Seng China Enterprises Index added 0.9%.

China stocks rose on Thursday, after a private sector survey showed the country's factory activity unexpectedly swung to growth in May from decline. ** The blue-chip CSI300 Index climbed 0.7% by the midday recess, while the Shanghai Composite Index gained 0.4%.

** Hong Kong's benchmark Hang Seng was up 0.8%, and the Hang Seng China Enterprises Index added 0.9%. ** Most other Asia-Pacific stock markets also rose amid receding bets for a U.S. rate hike this month and relief over the passage of the U.S. debt ceiling bill through the House.

** The Caixin/S&P Global manufacturing purchasing managers' index (PMI) rose to 50.9 in May from 49.5 in April, beating expectations of 49.5 in a Reuters poll, and a stark contrast to a deeper contraction activity seen in the official PMI released on Wednesday. ** Artificial Intelligence (AI)-themed stocks led the gains. Media firms jumped 3.5% and computer shares surged 3.8%.

** AI firm iFLYTEK Co jumped 10% to hit the daily limit, after it was appointed by China's Ministry of Industry and Information Technology as a leader in a large language model working group. ** Tech giants listed in Hong Kong advanced 2%, with food delivery giant Meituan up more than 5%.

** Broader market sentiment remained weak, as investors were worried about the sustainability of the economic recovery and market rebound. ** "We need more time to see whether the improvement would be sustained," said Zhou Hao, an economist at Guotai Junan International.

** "Further policy support is still required to boost domestic demand, we reckon a 10 bps MLF rate cut in June."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)