Mainland stocks lead Asian markets higher
SHANGHAI - Mainland stocks rose, with the Shanghai Composite Index leading Asian equity markets higher, as investors speculated recent losses were excessive.
The Shanghai Composite, Asia's worst performing index in the first half, rose 1.9 percent, led by Jiangxi Copper Co and Aluminum Corp of China Ltd. Joincare Pharmaceutical Group Industry Co paced gains by drugmakers, China's worst performers in the past month.
Equities are trading at their lowest levels relative to earnings in 18 months after the Shanghai index slumped 26 percent this year on concern government efforts to curb inflation and property speculation will slow the economy. The rebound is a boost for Agricultural Bank, which is seeking $20.1 billion selling stock in Shanghai and Hong Kong and may price its shares on Tuesday.
