By Michael Kitchen
LOS ANGELES (MarketWatch) -- A preliminary reading of HSBC's China manufacturing Purchasing Managers' Index moved closer to expansionary levels this month, with the index's headline number rising to 49.1 from September's final reading of 47.9. Anything above 50 represents expansion for manufacturing activity, while anything under 50 signals contraction, and the index has been below the 50 mark for a year as of the October report. The so-called "flash" version of the HSBC PMI is based on initial responses from 85% to 90% of those surveyed. Sub-indexes covering manufacturing output and new orders also marked gains. Stocks came off their lows following the data release, with the Hang Seng Index /quotes/zigman/2622475 HK:HSI -0.20% down 0.2% compared to its early loss of 0.6%. The Shanghai Composite Index /quotes/zigman/1859015 CN:000001 +0.03% was down just fractionally after trading 0.3% lower at the start of the session