* Oil producers soar on higher crude prices
* 14-day RSI at 75 now, indicating overbought market
* Resistance seen at 23,000 - Tanrich Securities (Updates to midday)
By Sui-Lee Wee
HONG KONG, Oct 4 (Reuters) - Hong Kong shares advanced to a more than 10-month high on Monday morning as a weak dollar boosted appetites for equities and strong Chinese manufacturing data reassured investors about the strength of the world's second-largest economy.
The benchmark Hang Seng Index <.HSI> was up 1.4 percent or 312.65 points at 22,670.82 by the midday trading break. Earlier in the session, it had gained as much as 1.6 percent to an intraday high of 22,705.99.
China's stock, money, foreign exchange and commodity futures markets are closed from Oct. 1-7 for the National Day holiday. Trading will resume on Friday, Oct. 8.
"It will require very significant negative news now to change the appetite of investors," said Jackson Wong, investment manager at Tanrich Securities. "The U.S. dollar is so weak that investors have no better way to invest than in equities, which are still relatively cheap."
But the charts show that gains in the index, which recorded its strongest quarterly performance in a year on Thursday and is up about 4 percent so far this year, may slow in the near term.
The index's 14-day Relative Strength Index has risen to 75, a level that indicates the market is now overbought, while Hong Kong stocks are trading at 13-14 times on a price-earnings basis -- nearly touching the 14-15 times that dealers find expensive.
But even with the gains on the relative strength index, Hong Kong is only Asia's fourth-most overbought market, with Indonesian stocks the most overbought.
Wong said the index could face resistance at 23,000, a level that was last hit in November 2009.
Oil producers gained after oil prices touched a two-month high near $82 on expectations that the slow pace of the U.S. economic recovery would prompt a monetary boost that would spur energy consumption. [ID:nSGE69302Q].
PetroChina Co Ltd <0857.HK> added 3.7 percent, CNOOC Ltd <0883.HK> advanced 4 percent.
Macau casino operators soared on hopes the enclave will report strong gambling revenue for September.
Sands China Ltd <1928.HK>, the Macau unit of U.S. casino
operator Las Vegas Sands Corp
Sands China rose 5.9 percent to a record, while SJM was up 7.3 percent.
China's manufacturing sector picked up steam in September after a mid-year lull, easing concerns of a renewed downturn in global growth. [ID:nTOE690012] (Editing by Chris Lewis)