Stocks hit two-month high on corporate earnings jump

Shares rose on optimism over corporate earnings, and expectations that the country appears on course to achieve its economic growth target.

China's key stock index rose to its highest mark in more than two months, led by financial shares on expectations of strong economic data due for release Thursday, while oil shares also went up as crude prices rose.

"Though positive news dominates, the market could be entering a consolidation stage," said Alfred Chan, chief dealer at Cheer Pearl Investment. "Major players are looking to lock in profits and that may cap rises in the near future."

Brokers generally see the benchmark index meet resistance at around 2,500.

China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange closed at 3,084.45 points yesterday, up 46.18 points, or 1.52 percent, from the previous close.

The official Shanghai Securities News reported that recently released economic data had led many economists and analysts to expect China's gross domestic product to have grown more than 9 percent in the third quarter ending September from a year earlier.

China Merchant Bank gained 4.69 percent to 16.73 yuan ($2.45) after its shareholders approved an additional share offer to raise up to 22 billion yuan ($3.22 billion) to boost its capital adequacy ratio.

PetroChina climbed 1.47 percent to 13.80 yuan ($2.02) as US crude oil futures rose more than half a percent Tuesday to a one-year high of $80.05 a barrel.

The Shenzhen Component Index on the Shenzhen Stock Exchange closed at 12,676.24 points Tuesday, up 192.97 points, or 1.55 percent, from the previous close.

Agencies/Global Times
 

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