Chinese stocks climbed to a nine-and-a-half-month closing high in active turnover on Tuesday, lifted by rising overseas markets while non-ferrous metal shares were strong and ample liquidity continued to buoy the market. The Shanghai Composite Index ended up 0.90 percent at 2,676.682 points, after rising as far as 2,688.112, its highest intraday level since August 8.
Gaining Shanghai A shares outnumbered losers by 603 to 281. Turnover in Shanghai A shares rose to a one-week high of 147.8 billion yuan ($21.6 billion) from Monday's 117.4 billion yuan. US stocks rallied on Monday on hopes the recession is easing and consumer spending is stabilising, while Hong Kong's Hang Seng Index climbed 3 percent in Tuesday afternoon trade.
Jiangxi Copper raced up its 10 percent daily limit to 27.21 yuan in its heaviest trade since mid-April, spurred by surging copper prices. Western Mining advanced 7.98 percent to 15.16 yuan. Analysts said ample liquidity in the financial markets was supporting share prices while investors drew confidence from comments by an official at China's top economic planning body late on Monday that China could meet its 8 percent economic growth target this year and would take additional steps if the economy started losing momentum.
"The overseas market helped sentiment. The index has a chance to hit 2,700 points as the uptrend remains unchanged," said Huatai Securities analyst Li Wenhui. He said the market also drew support from a steady performance by China United Telecommunications, which rose 0.45 percent to 6.72 yuan despite the expiry of a lock-up on 10.7 billion shares that became tradable on Tuesday.
Bank shares were firm, with Industrial Bank jumping 5.20 percent to 29.15 yuan. PetroChina, the index's most heavily weighted stock, gained 1.39 percent to 13.15 yuan after saying it would buy a city gas business from its parent company for 1.1 billion yuan. Huatai Securities' Li said China's oil and gas prices were expected to be raised.
Yangtze Power was hit by profit-taking and sank 5.15 percent to 14.17 yuan after rising 4.11 percent on Monday, when its shares resumed trade following a one-year suspension. It announced a restructuring plan that will give it full ownership of the world's largest hydropower project.