OREANDA-NEWS. February 10, 2015. Hong Kong stocks fell 0.64 percent Monday following more weak Chinese trade data, while a strong US jobs report fuelled speculation the Federal Reserve will raise interest rates earlier than expected.

The benchmark Hang Seng Index slipped 158.39 points to 24,521 on turnover of HK\\$67.24 billion (\\$8.68 billion).

However, shares in Shanghai turned positive on hopes for fresh economy-boosted measures out of Beijing.

China said at the weekend that exports slipped 3.2 percent year-on-year in January, while imports dived 19.7 percent -- the largest drop in five years -- hit by weak demand at home and low commodity prices.

The news comes after official data showed the economy grew in 2014 at its slowest pace in 24 years, while two key gauges indicate manufacturing activity is shrinking.

Last week the People's Bank of China cut the amount of cash that lenders must keep in reserve and in November it lowered interest rates.

Fears of a rate hike by the Fed also weighed on buying after the US Labor Department said 257,000 jobs were created in January and revised up its final growth figures for the previous two months.

While investors welcome the strengthening US economy, the latest figures increase the chances the US central bank will tighten monetary policy to prevent bubbles developing.

"Chinese policymakers are acutely aware of potential issues within their economy and the bias is for more stimulus," Tim Schroeders, a portfolio manager at Pengana Capital in Melbourne, told Bloomberg News.

"The US jobs data reaffirms the likelihood of a Fed change in policy around mid year."

In Hong Kong trade Wharf Holdings fell 2.69 percent to HK\\$59.80, Cathay Pacific shed 1.50 percent to HK\\$17.10 and Henderson Land lost 0.46 percent to HK\\$54.45.

However, Lenovo surged 3.13 percent to HK\\$11.86 and insurance giant AIA added 0.34 percent to HK\\$44.35.

In mainland China the benchmark Shanghai Composite Index rose 0.62 percent, or 19.21 points, to 3,095.12 on turnover of 240.7 billion yuan (\\$39.3 billion).

The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.39 percent, or 5.87 points, to 1,489.39 on turnover of 185.4 billion yuan.

"Weak trade data has enhanced people's expectations of further monetary loosening," Central China Securities strategist Zhang Gang told AFP.

He pegged the Shanghai index to trade around 3,000 points before the Chinese New Year later this month, when the market will be closed for a week-long holiday.

Financial shares rebounded. In Shanghai, Citic Securities gained 3.89 percent to 29.41 yuan, Bank of Communications rose 2.20 percent to 6.03 yuan and China Life Insurance jumped 5.92 percent to 36.88 yuan.

Food and beverage companies rose. Shanghai-listed Sdic Zhonglu Fruit Juice surged by its 10 percent daily limit to 16.51 yuan and Shenzhen-listed meat producer Henan Shuanghui Investment & Development added 1.84 percent to 32.10 yuan.