China, Hong Kong stocks rise on upbeat factory data, Trump's trade deal signal

* SSEC +0.7%, CSI300 +1.3%; HSI +0.4%, HSCE +0.5%

* Trump says will meet Xi to sign phase-1 trade deal

* China Factory activity beat estimates in October

HONG KONG, Nov 1 (Reuters) - The Chinese stock market climbed on Friday after a private survey showed factory activity in China beat expectations, and U.S. President Donald Trump said he will soon sign a first-stage trade deal with Beijing. ** At the midday break, the Shanghai Composite index was up 0.7% at 2,950.47. China’s blue-chip CSI300 index was up 1.3%. ** CSI300’s financial sector sub-index was higher by 1.5%, the consumer staples sector rose 0.2%, the real estate index was up 1.7% and the healthcare sub-index was up 1.1%. ** Chinese H-shares listed in Hong Kong rose 0.5%, while the Hang Seng Index rose 0.4% to 27,020.20. ** The smaller Shenzhen index rose almost 1% and the start-up board ChiNext Composite index gained 0.7%. ** Trump said on Thursday the United States and China would soon announce a new site where he and Chinese President Xi Jinping will sign a “Phase One” trade deal after Chile canceled a planned summit set for mid-November. ** China’s commerce ministry said in a statement on Thursday that bilateral talks will continue to proceed as previously planned and the lead trade negotiators from both countries will speak by telephone on Friday. ** Factory activity in China expanded at its fastest pace in more than two years in October as export orders and production rose, a private business survey showed on Friday. The expansion beat expectations and contrasted with the dour results of an official survey on Thursday. ** Hong Kong slid into recession for the first time in a decade in the third quarter, weighed down by increasingly violent anti-government protests and the protracted U.S.-China trade war. ** Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.3% while Japan’s Nikkei index was down 0.5%. ** The largest percentage gainers in the main Shanghai Composite index were Shanghai Fenghwa Group Co Ltd, up 10.1%, followed by Zhejiang Medicine Co Ltd and Easy Visible Supply Chain Management Co Ltd, both up 10%. ** The Shanghai stock index is above its 50-day moving average and above its 200-day moving average. ** In Hong Kong, the energy sub-index dipped 0.1% while the IT sector rose 0.1%. ** The top gainer on the Hang Seng was Sunny Optical Technology Group Co Ltd, up 2.3%, while the biggest loser was China Shenhua Energy Co Ltd, which was down 1.8%.

Reporting by Noah Sin; Editing by Rashmi Aich