Hong Kong and mainland stocks gained along with markets in Asia-Pacific as optimism about the long-term recovery outlook despite China’s ongoing regulatory crackdown. The Hang Seng Index gained 1.3 per cent to 25,878.99, reversing from a 1.7 per cent plunge earlier. The benchmark was little changed in August after a steep 9.9 per cent sell-off in July. China’s Shanghai Composite gained 0.5 per cent. The Hang Seng Tech index gained 3.4 per cent. Alibaba Group Holding, the owner of this newspaper, rose 4.6 per cent to HK$165.50, while Tencent increased 3.3 per cent to HK$481.20. Meituan soared 9 per cent to HK$249. The operator of China’s largest food delivery platform beat second-quarter estimates with a 77 per cent jump in revenue , despite facing an antitrust probe and heightened regulatory scrutiny in the technology sector. Markets in the Asia-Pacific gained. Japan’s Nikkei 225 added 1.1 per cent, while South Korea’s Kospi soared 1.8 per cent. Australia’s S&P/ASX 200 rose 0.4 per cent. Stocks fell in earlier trading after a weak report on China’s economy. The official non-manufacturing purchasing managers’ index fell to 47.5 in August, from 53.3 in July. A reading below 50 indicates a contraction. The figure was below a Bloomberg survey which predicted a fall to 51.9, and is the lowest figure since the index slumped to an all-time low of 29.6 in February 2020 , after China began lockdowns to control the coronavirus pandemic. Ping An Insurance slumped 3.8 per cent to HK$60.40. China’s banking and insurance sector regulator was probing the insurer’s property investments, according to a Reuters report. In Shanghai, Chengdu Guoguang Electric, which manufactures and distributes microwave electron products, soared 166.6 per cent to 137.16 yuan on its trading debut.