* Hang Seng +0.7%, highest since mid-Sept
* Trump says will sign phase-1 deal soon with Xi
* China's October factory activity beats estimates
HONG KONG, Nov 1 (Reuters) - Hong Kong's main stock index closed at its highest level in over six weeks on Friday as a surprise rise in factory activity in mainland China and increased hopes of a U.S.-China trade agreement cheered investors.
** At close, the Hang Seng index climbed 0.7% at 27,100.76 points, its highest level since Sept. 16. The index gained 1.6% week-on-week. The Hang Seng China Enterprises index rose 0.9% on Friday.
** The sub-index of the Hang Seng tracking energy shares rose 0.5%, the IT sector climbed 0.3%, the financial sector ended 0.9% higher and the property sector rose 0.8%.
** The top gainer on the Hang Seng was Sunny Optical Technology Group Co Ltd with a 2.1% gain, while the biggest loser was CSPC Pharmaceutical Group Ltd, which fell 1.6%.
** Factory activity in China expanded at its fastest pace in more than two years in October as export orders and production rose, a private business survey showed on Friday. The expansion beat expectations and contrasted with the dour results of an official survey on Thursday.
** U.S. President Donald Trump said on Thursday the United States and China would soon announce a new site where he and Chinese President Xi Jinping will sign a "Phase One" trade deal after Chile canceled a planned summit set for mid-November.
* China's commerce ministry said in a statement on Thursday that bilateral talks will continue to proceed as previously planned and the lead trade negotiators from both countries will speak by telephone on Friday.
** Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.4%, while Japan's Nikkei index closed down 0.3%.
** About 1.42 billion Hang Seng index shares were traded. The volume traded in the previous trading session was 1.91 billion.
** At close, China's A-shares were trading at a premium of 29.86% over Hong Kong-listed H-shares. (Reporting by Noah Sin Editing by Saumyadeb Chakrabarty)