China, Hong Kong shares propelled by PMI data

HONG KONG, June 1 (Reuters) - China and Hong Kong stocks rose in tandem on Monday as investors cheered better-than-expected data from the mainland, which bolstered widespread expectations for rapid recovery in the world's third-largest economy.

The official purchasing managers index (PMI) fell slightly to 53.1 from 53.5 in April, but was above the boom-or-bust 50 mark for a third straight month [ID:nPEK90485], while a separate PMI published by CLSA rose to a 10-month high of 51.2 from 50.1 in April. [ID:nBJB000617]

The strong data also helped investors overcome their jitters ahead of the largest ever U.S. manufacturing bankruptcy.

"The sentiment is so positive and everybody is so optmistic that they can look at this GM news and think this the last bit of really bad news we will get out of this crisis," said Jackson Wong, investment manager at Tanrich Securities.

Here are the top index and stock moves by midday-

HONG KONG

* The benchmark Hang Seng Index .HSI was up 2.8 percent or 503.60 points at 18,674.600, its highest level since September 2008. The guage rose 17 percent in May, its biggest single-month advance in a decade.

* Turnover on the exchange climbed to HK$53.4 billion from HK$45.3 billion by midday Friday.

* The China Enterprises Index .HSCE of top mainland companies had risen 3.7 percent to 10,811.12.

* Offshore oil specialist CNOOC (0883.HK) jumped 6.9 percent to HK$10.90 after crude hit a seven-month high helped by stock market optimism and sustained hope for a global economic recovery.

* Top refiner Sinopec (0386.HK) rose 3.1 percent to HK$6.41 after China raised retail diesel and gasoline prices by 6-7 percent in its second and biggest increase this year, relieving pressure on refiners. Asia's largest oil and gas producer PetroChina (0857.HK), which also has refining operations, climbed 4.2 percent.

* Local property and bank stocks rose on reports of strong weekend property sales at improved prices amid the low interest rate environment and ample liquidity in the money system.

Property conglomerate New World Development (0017.HK) vaulted 12.7 percent.

BOC Hong Kong (2388.HK), which was raised to a buy by Deutsche Bank on Friday, advanced 7.6 percent, while smaller rival Bank of East Asia (0023.HK) tacked on 5.9 percent.

* Gold miner Zijin Mining (2899.HK) soared 8.8 percent after the price of the precious metal hit a three-month high on Monday, helped by a weak dollar and concerns about rising prices.

* Other metal stocks also surged, drawing strength from China's better-than-expected purchasing managers index, which indicated manufacturing activity in the country was still expanding.