Chinese shares surged sharply in morning trade after a rally on the Wall Street and news of improving weather in snow-hit regions.
The benchmark Shanghai Composite Index rallied 158.4 points, or 3.67 percent, to 4,479.3 points on the Shanghai Stock Exchange at midmorning. The index had lost 1.43 percent on Friday.
Wall Street rallied last week, with Dow Jones industrial average gaining more than 0.7 percent Friday, after investors shifted their attention to Microsoft Corp.'s bid for Internet provider Yahoo Inc. and a possible rescue plan for the troubled bond insurance sector. The index gained more than 4 percent for the week, its steepest since March 2003.
The worst snowstorm in five decades that plagues China's central, southern and eastern regions has added gloom to local markets, which earlier fell amid lingering concerns over U.S. recession.
Heavy weights surged. Chinalco (Aluminium Corporation of China), the state-owned and largest aluminum company of the country, rose by the daily limit of ten percent.
The Shenzhen Component Index was also up more than four percent.
In currencies, the central parity of RMB against the U.S. dollar was7.1853 yuan to one dollar, according to China Foreign Exchange Trading System. It had hit a new high to a central parity rate of 7.1853 yuan to one dollar last Thursday, following an overnight key interest rate cut in the United States.
Source:Xinhua
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