0650 GMT [Dow Jones] HSI +1.2% at 21,282.16 vs 21,304.20 midday, as weak China July PMI (CFLP, HSBC) rekindles expectations Beijing may loosen policy stance on tightening. Goldman Sachs believes recent market's upturn "is primarily on the back of expectations that policy makers may normalize their stance given decelerating economic momentum and moderating inflation pressures." House continues to remain positive on Chinese equities given moderate valuations, low earnings risks. Except for Ping An (2318.HK) suspended from trading, all blue chips higher, suggesting broad-based buying interest, could also taken as signal of optimism for HK blue chips' interim results, with HSBC (0005.HK), Hang Seng Bank (0011.HK) reporting after market close. Cathay Pacific (0293.HK), due to report Wednesday, +2.1% at HK$17.66, sets 52-week high. (
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[email protected] (END) Dow Jones Newswires August 02, 2010 02:50 ET (06:50 GMT)