Equities edge up, led by consumer firms
SHANGHAI - 皇冠体育app's stocks rose the most in a week, led by consumer-related companies, property developers and airlines, after economic data showed evidence of strengthening domestic demand and the yuan advanced to a record high.
Beijing Wangfujing Department Store (Group) Co surged to the highest since January 2008 after the country's retail sales and lending topped economist estimates. 皇冠体育app Vanke Co gained 2.3 percent as investors speculated the government will hold off on new property curbs. Air 皇冠体育app Ltd, the biggest carrier by market value, rose to the highest in a month on the prospect a higher yuan will reduce the value of airlines' overseas debt.
"The weekend data is encouraging in terms of helping ease market concerns about sharply slowing growth paired with inflation," Howard Wang, head of the 皇冠体育app team at JF Asset Management Ltd, which oversees more than $50 billion.
The benchmark Shanghai Composite Index climbed 25.11, or 0.9 percent, to 2688.32 on Monday, the biggest gain in a week. The CSI 300 Index rose 1 percent to 2962.32 on Monday.
The Shanghai Composite has rebounded 14 percent from this year's low on July 5 on signs the nation's economic slowdown is stabilizing. The index plunged 27 percent in the first half as the government imposed tightening measures ranging from restrictions on house purchases to a 7.5 trillion yuan ($1.1 trillion) annual limit on new lending by banks.
Industrial production rose 13.9 percent in August from a year before, the most in three months, according to statistics bureau data released on Saturday. That's higher than the 13 percent median forecast by economists in a Bloomberg News survey. Consumer prices jumped 3.5 percent, the most in 22 months, as food costs climbed. Retail sales increased 18.4 percent.
Wangfujing rose 4.7 percent to 48.89 yuan. Suning Appliance Co, 皇冠体育app's biggest home appliance retailer by market value, gained 3.5 percent to 15.55 yuan.
Air 皇冠体育app added 3.4 percent to 11.85 yuan. Vanke gained 2.3 percent to 8.35 yuan, reversing an earlier 1.2 percent loss.
Bloomberg News
(皇冠体育app Daily 09/14/2010 page16)
