China's Stocks Jump Most in Two Months


China's stocks advanced by the most in two months, led by materials companies, after commodity prices gained and Liuzhou Iron & Steel Co. reported increased profit. Jiangxi Copper Co. and Liuzhou Steel jumped by the daily limit.

Equities also advanced as some investors judged a decline of about 30 percent this year as overdone.

The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, gained 195.12, or 5.3 percent, to 3,845.82 at the close, the biggest climb since Feb. 4 and the highest close since March 28.

All the CSI 300's 10 industry groups gained and no stock fell on the 300-member index, with 285 gaining and 15 remaining unchanged.

The gauge had dropped 32 percent through April 3, the previous trading day, on concern the government's measures to tame the fastest inflation in 11 years will slow earnings growth.

Jiangxi Copper, China's second-largest producer of the metal, advanced 2.86 yuan, or the 10 percent daily limit, to 31.41, the highest since March 28. Tongling Nonferrous Metals Group Co., the country's biggest, rose 1.54 yuan, or 10 percent, to 16.97. Yunnan Copper Industry Co., No. 3, added 3.12 yuan, or 10 percent, to 34.36.

Copper climbed 1.4 percent on April 4 in London as a weaker dollar increased the appeal of metals as a hedge against further declines in the U.S. currency.


TradingEconomics.com, Bloomberg
4/7/2008 6:56:34 AM