* HK up 1.27 percent; biggest single day gain in four weeks
* Shanghai up 0.94 percent, Ping An advances
* Automobile shares up after robust sales figures (Updates to midday)
By Donny Kwok and Farah Master
HONG KONG/SHANGHAI, Sept 2 (Reuters) - Shares in Hong Kong and Shanghai rose on Thursday tracking gains in overseas markets after strong economic data from the United States and China, with Ping An Insurance leading the rise.
Hong Kong-listed shares of Ping An Insurance (Group) Co of China Ltd, the biggest gainer in percentage terms among blue chips, was up 5.1 percent at the midday break after gaining as much as 7.5 percent to its highest level in more than four months. Its Shanghai-listed A shares rose 4.8 percent.
The world's second-biggest insurer has agreed to buy a further 32 percent of Shenzhen Development Bank for 29.1 billion yuan ($4.3 billion).
"Ping An's acquisition of Shenzhen Development Bank will help it strengthen cross-selling activities. This diversification will improve revenue and profit, especially over the long term," said Steven Lam, vice-president at Karl-Thomson Securities.
Hong Kong stocks were poised for a second day of gains. The benchmark Hang Seng Index ended Thursday morning up 1.27 percent at 20,886.11. Turnover was HK$36.98 billion ($4.76 billion).
"The market has been oversold for quite a while. Everyone was waiting for good news and yesterday's economic data from the United States is a good excuse for investors to buy back into the market," said Andy Lam, strategist at Harris Fraser (International). "Turnover is also up, which indicates that the market is gaining back the confidence of investors."
The HSI is still below the 20-day moving average with first resistance seen at around 21,000. The upside could be sustained if the market broke this level, brokers said.
Automobile makers were mostly higher after China's robust car sales in August surprised the market following Beijing's subsidies for fuel-efficient models.
Geely Automobile Holdings Ltd was up 2.7 percent and BYD Co Ltd climbed 3.1 percent. Dongfeng Motor Group Co Ltd, the country's third-largest auto maker, was up 2.9 percent.
Esprit Holdings Ltd, world's No.8 apparel retailer by market value, gained 1.4 percent ahead of the release of its earnings later on Thursday.
SHANGHAI GAINS, CAR MAKERS SHINE
China's key stock index was up 0.94 percent by midday Thursday, taking a cue from gains on overseas markets after strong U.S. manufacturing data, while car makers such as SAIC Motor Corp Ltd were cheered by surprisingly robust sales.
The Shanghai Composite Index stood at 2,647.636 points by the midday trading break, after slipping 0.6 percent on Wednesday.
"Everyone has a newer reading of the economy. After the PMI we had strong auto sales; the U.S. market performed really well. There is more optimism. The whole economic picture is looking better," said Wang Aochao, an analyst at UOB Kay Hian in Shanghai.
China's car sales in August rose 59.3 percent from a year earlier, bouncing surprisingly higher after sluggish sales in the preceding months, helped largely by Beijing subsidies for fuel-efficient models.
Chinese carmaker Anhui Jianghuai Automobile Co Ltd jumped 6.4 percent, while Huayu Automotive Systems Co Ltd gained 7.4 percent.
Analysts said 2,700 points, a level the index has repeatedly failed to breach over the last month, would pose as short-term resistance amid concern about global growth.
"China's economic data looks fine but if growth worsens overseas, including Japan, Europe, and there are new risks, the previous idea of decoupling is not likely," said Wang.
Turnover of Shanghai A shares edged down to 72 billion yuan ($10.57 billion) by midday from Wednesday's 76 billion yuan.
Gaining stocks outnumbered losers 766 to 119. ($1=6.810 Yuan) (Editing by Chris Lewis)