China stocks advanced to a
fresh 10-1/2 month high on Tuesday, helped by a strong rally in
blue-chips, in particular financial and energy shares, after
U.S. exchanges rose.
The blue-chip CSI300 index rose 0.8 percent, to
3,468.36, while the Shanghai Composite Index gained 0.9
percent to 3,248.35 points. Both closed at their highest levels
since Jan. 6.
Energy shares were among the biggest gainers, as
oil prices rose to their highest level since October on Tuesday
and the market priced in a potential output cut led by producer
An across-the-board recovery in the commodities futures
market also helped lift risk appetites for materials
, amid rising expectations of higher inflation.
Financial bellwether China Life climbed to a
10-month high, leading gains in other insurance companies
, as investors bet the sector would benefit from
rising bond yields and a recovering stock market.
But some analysts cautioned that the rebound could be
Lianxun Securities advised clients to take a cautious
approach, saying that "the rapidly-strengthening U.S. dollar is
adding pressure on equities in emerging markets".
Most sectors gained ground, while defensive consumers
and properties continued to lag.