Hong Kong Stocks Heading for Five-Week High; China Gas SurgesHong Kong stocks advanced, with the equity benchmark heading for a five-week high, ahead of preliminary China manufacturing data due today. China Gas Holdings Ltd. surged after the government signed a $400 billion supply accord with Russia.

 The Hang Seng Index 0.3 percent to 22,910.01, poised for the highest close since April 14, as of 9:34 a.m. in Hong Kong. The Hang Seng China Enterprises Index, also known as the H-share index, added 0.5 percent to 10,043.47.

A flash Purchasing Managers Index from HSBC Holdings Plc and Markit Economics is expected to have risen to 48.3 in May from a final figure of 48.1 a month earlier, according to a Bloomberg survey. A reading below 50 today would signal a fifth month of contraction in factory activity.

China shouldnt make fundamental changes to its monetary policy given the current economic situation and can still use fiscal policy to support economic growth, according to a front-page commentary in Securities Times.

Russia signed a $400 billion deal to supply natural gas to China after a decade of negotiations, mostly because of a disagreement over the price. The accord between the worlds largest energy exporter and the biggest consumer will allow state-run gas producer Gazprom to invest $55 billion developing fields in eastern Siberia and building a new pipeline, Russian President Vladimir Putin said.

Futures on the S&P 500 were little changed. The underlying gauge rose 0.8 percent yesterday after Federal Reserve policy makers said continued stimulus doesnt risk sparking a jump in the inflation rate.

 

Source : Bloomberg