New highs for China markets
Chinese markets advanced driving the benchmark indices to new highs of the year, after the manufacturing expanded for a third month in a row and prices of raw materials rallied.
The Shanghai Comprehensive Index added 3.36 percent to 2721.28, the highest since the opening ceremony for Beijing Olympics. The SME Comprehensive Index climbed 1.34 percent to 4214.68.
The Hang Seng Index rose 3.95 percent to 18888.59, the highest since September 26, 2008. The Hang Seng Growth Enterprises Index advanced 0.15 percent to 559.80. The Hang Seng China Enterprises Index climbed 4.89 percent to 10937.85.
Taiwan's TAIEX Index added 0.92 percent to 6954.10.
Mining stocks rise
The mainland’s mining index surged 6.58 percent on higher commodity prices, the largest daily gain in four weeks.
PetroChina Co. (SH: 601857;HK:0857), China’s largest oil producer, advanced 4.89 percent on Shanghai trading and 5.62 percent on Hong Kong trading, after the nation increased fuel prices.
China Shenhua Energy Co.(SH:601088;HK:1088), the nation’s largest coal producer, added 6.64 percent on Shanghai and 6.02 percent on Hong Kong.
Yanzhou Coal Mining Co. (SH:600188;HK:1171) surged 11.23 percent on Hong Kong and 4.57 percent on Shanghai.
Datong Coal (SH:601001) surged to the 10 percent trading cap.
Zijin Mining (SH:601899;HK:2899), China’s largest gold producer, surged 10 percent on Shanghai and 13.55 percent on Hong Kong.
Zhaojin Mining Industry Co. (HK:1818) surged 11.46 percent.
Shandong Gold (SH:600547) surged to the 10 percent trading cap.
Jiangxi Copper Co. (SH:600362;HK:0358), the country’s biggest producer of the metal, surged 9.05 percent on Shanghai trading and 8.74 percent on Hong Kong trading.
Aluminum Corp. of China (SH:601600;HK:2600), the nation’s biggest producer of the metal, climbed 8.75 percent on Hong Kong and 2.61 percent on Shanghai.
PMI over 50 for third month
Property and financial shares also rose after May's purchasing manager's index (PMI) figure remained above 50 for the third month in a row.
The benchmark reading by the China Federation of Logistics & Purchasing was 53.1 for May, a slight drop from 53.5 in April.
Industrial and Commercial Bank of China (SH:601398;HK:1398), the world’s largest bank, added 3.69 percent on Shanghai and 4.71 percent on Hong Kong trading.
China Merchants Bank Co. (SH:600036;HK:3968) rose 5.58 percent on Shanghai and 7.33 percent on Hong Kong.
HSBC (HK:0005), Europe’s largest bank, advanced 3.36 percent.
Ping An Insurance (SH:601318;HK:2318), China’s second-largest insurer, surged 10 percent on Shanghai and 7.72 percent on Hong Kong.
Hopson Development Holdings Ltd. (HK:0754), a Hong Kong-based developer of real estate in China, soared 21.21 percent.
China Vanke Co. (SH:000002) the nation’s biggest listed property developer, rose 4.31 percent. Poly Real Estate Group Co.(SH:600048), China’s second-largest developer by market value, added 5.71 percent.
Gemdale Co. (SH:600383), the fourth-largest, surged to the 10 percent trading cap.
Northeast Electric Co. (HK:0042) rose 8.7 percent. Shares dropped 18.58 percent last Friday after the company said Warren Buffet had not invested in it, as had been rumoured.
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