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 mia.lamar@wsj.com