Chinese shares rebounded to an 11-month high Wednesday on optimism about the economy after a government official issued a forecast of strong second quarter growth.
The benchmark Shanghai Composite Index jumped 29.6 points, or 1 percent, to close at 2922.3, the highest since July 17. The Shenzhen Composite Index for China's smaller second exchange added 1.8 percent to 953.93.
Investors were encouraged by a forecast issued by an official of China's statistics agency saying economic growth in the April-to-June quarter should be 8 percent compared with the year-earlier period, analysts said.
"The remark is instilling confidence in the market. Since the official is from the statistics bureau, he must have some data to back himself up," said Huang Xiangbin, an analyst for Cinda Securities in Beijing. Huang said the forecast is stronger than expected.
Resources, a sector closely linked to economic performances, climbed.
China Shenhua Energy Ltd., the country's biggest coal producer, gained 4.8 percent to 27.84 yuan, while Datong Coal Industry Co. rose 4.4 percent to 35.19 yuan.
PetroChina Ltd., Asia's biggest gas and oil producer, added 1.3 percent to 14.06 yuan, and China Petroleum & Chemical Corp., Asia's largest refiner by capacity, increased 2 percent to 10.52 yuan.
Analysts said metals shares were boosted by expectations that Beijing might ease curbs on exports of industrial materials after the United States and the European Union filed a World Trade Organization complaint over them.
Jiangxi Copper Ltd., China's second largest producer, surged by the daily limit of 10 percent to 32.4 yuan, and Aluminum Corp of China vaulted 4.4 percent to 12.37 yuan.
Brokerages rose on expectations they will get more business after regulators lifted a ban on initial public offerings last week. Hongyuan Securities climbed 2.8 percent to 21.14 yuan, while Guoyuan Securities gained 2.1 percent to 18.59 yuan.
In currency markets, the yuan strengthened to 6.8335 to the U.S. dollar, up from Tuesday's close of 6.8362.
No comments:
Post a Comment