Business conditions in Hong Kong moved to expansion in April, the latest survey from Nikkei showed on Friday with a PMI score of 51.1.
That's up from 49.9 in March, and moves above the boom-or-bust line of 50 that separates expansion from contraction.
Individually, the index was boosted by gains from new orders and output.
Employment remained broadly stagnant due to spare capacity, and firms cut prices despite rising inflation.
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