Chinese shares rose 2.23 percent on Friday to close at their highest level in more than 18 months, led by a more than 7 percent jump in oil giant Sinopec Corp, which was buoyed by high oil prices.
The benchmark Shanghai composite index finished at 1,416.793 points, its highest close since October 8, 2004, when it ended at 1,422.929 points. Oil raced to an all-time high above $74 a barrel earlier this week, but prices cooled off somewhat on Thursday.
Sinopec Corp, Asia's top refiner, jumped 7.55 percent to 5.98 yuan as investors bet that high oil prices would boost the company's bottom line. Its shares have risen 28 percent so far this year, also helped by its strong 2005 earnings.
Airline stocks were pressured by the rise in oil prices, with China Southern Airlines Co Ltd closing unchanged at 2.33 yuan despite the market rally. It has dived 12 percent since the start of 2006, steeply underperforming the broader market. The Shanghai index has jumped 22 percent since the start of this year, as technical factors and financial reforms draw investors back following a four-year market slump.
This week alone, the index had added 4.2 percent after Beijing said on Friday last week that it would make it easier for individuals and firms to buy foreign currency and invest abroad.
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