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Chinese shares edged up 0.76 percent on Tuesday, supported by strong gains in metals and relief that Friday's interest rate hike had not significantly hurt the market. Shares in copper companies soared as a strike at Chile's Escondida, the world's largest copper mine, remained unresolved, boosting LME copper prices.
Jiangxi Copper Co Ltd, China's top copper producer, jumped 5.01 percent to 10.90 yuan while smaller rival Yunnan Copper Co Ltd gained 4.89 percent to 10.93 yuan.
Shandong Gold Mining, China's second largest gold miner, said on Tuesday it would issue shares worth 2.5 billion yuan to buy gold mines from its parent. It ended 5.08 percent higher at 28.33 yuan.
The benchmark Shanghai composite index closed at 1,613.355 points as turnover in Shanghai A-shares expanded to a still modest 15 billion yuan ($1.9 billion) from 11.9 billion yuan on Monday. "The market recovered quickly from the interest rate hike, which is a sign that it will hold up in coming days," said Luo Xiaoming at Ping An Securities.
Baoshan Iron and Steel Co Ltd, the listed arm of China's largest steel maker, rose 0.97 percent to 4.16 yuan after announcing a steel price cut of more than 4 percent in the fourth quarter. The cut had been expected.
First-half earnings announced on Tuesday were mixed. Ningbo Bird Co Ltd, one of China's biggest home-grown mobile phone makers, ended 1.14 percent down at 2.60 yuan after returning to the black for the first half but posting a big drop in turnover due to stiff competition.
Chongqing Changan Automobile Co Ltd, China's largest maker of minivans, edged down 0.41 percent to 4.84 yuan after reporting a 48 percent jump in first-half net, helped by its joint venture with Ford Motor Co the result had been widely predicted by analysts.
However Yanjing Brewery climbed 1 percent to 7.22 yuan after it reported that first-half net rose 5 percent and that its beer sales volume surged 17 percent, outpacing 14 percent growth in the overall Chinese market.

Copyright Reuters, 2006

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