Energy, financial shares help push mainland stocks higher

Chinese mainland stocks rose on Tuesday, helped by a rally in bluechips, especially financial and energy shares.

The benchmark Shanghai Composite Index increased 0.94 percent to close at 3,248.35 points, while the Shenzhen Component Index finished 0.79 percent higher at 10,985.60 points.

The CSI 300 index of the 300 biggest companies traded in Shanghai and Shenzhen went up 0.79 percent to close at 3,468.36 points. The ChiNext Index, which tracks China’s NASDAQ- style board for high- tech and emerging start- ups, rebounded 1.16 percent to 2,177.65 points.

A total of 663.8 billion yuan ($ 96.34 billion) in shares changed hands on the Shanghai and Shenzhen exchanges, up from 593 billion yuan on Monday.

Energy shares were among the best performers, as oil prices rose to their highest since October as the market priced in a potential output cut by the Organization of the Petroleum Exporting Countries, Reuters reported on Tuesday.

An across- the- board recovery in commodities futures also helped raise the risk appetite for materials, amid rising expectations of higher inflation.

Financial bellwether China Life climbed to a 10- month high, leading to gains in other insurance companies, as investors bet the sector would benefit from rising bond yields and a recovering stock market.

But some analysts warned that the rally could be fragile. Lianxun Securities advised clients to take a cautious approach, saying that“the rapidly-strengthening US dollar is adding pressure on equities in emerging markets.”