Hong Kong stocks found breathing room from a quiet mainland market, experiencing what brokers say is a technical rebound on Friday after a bruising third quarter. The Hang Seng Index added 2.70 per cent, or 562.48 points, to trade at 21,408.78 in morning trade. The H-share China Enterprise Index jumped 3.25 per cent, or 305.48 points, at 9,710.98. “The market is in a temporary rebound after being oversold in the past three months. An improving reading of the manufacturing data also aided the technical recovery,” said Ben Kwong, executive director of KGI Asia. The official purchasing manager’s index edged up 0.1 to 49.8 for September, albeit still below the 50 reading that demarcates an expansion from a contraction. The mainland Chinese markets are closed for holidays and will resume trading next Thursday. The suspension freed Hong Kong to play catch up with overseas markets, especially the US, which had a steady performance overnight, said Kwong. Still, the rally is unlikely to gain traction as concerns over slowing growth in mainland China and pending interest rate hikes in the US continue to rattle investors. Louis Tse Ming-kwong, director of VC Brokerage, noted Hong Kong market benchmarks were weighed down by the constantly bleak performance in Chinese financial stocks. “The rally will not be strong, despite the Hong Kong market having reached a historically low valuation of 8.8 times price to forward earnings, compared to 15-16 times over the past two years.” Still, Tse said, there is a fair chance for the HSI to add another 1,000 points by year end, testing the 21,400 and 21,800 levels.