Chinese stocks rally on Spain bailout -- June 11

BEIJING - Chinese stocks reversed losses of the past week to close higher on Monday, lifted by a eurozone agreement to bail out Spain's beleaguered banks and China's better-than-expected trade data.

The benchmark Shanghai Composite Index closed at 2,305.86, up 24.41 points or 1.07 percent.

The Shenzhen Component Index gained 142.59 points, or 1.47 percent, to close at 9,849.77.

Investors were cheered after the eurozone finance ministers on Saturday agreed to lend Madrid up to $125 billion to help its battered banks.

Meanwhile, China's foreign trade data, which were released on Sunday, trumped market forecasts to post double-digit rates in May. Data with the customs authority showed that foreign trade rose 14.1 percent year on year to hit a record monthly high of $343.58 billion in May.

Stock markets were also lifted by hopes for more government stimulus measures to boost a slowing economy, after data from the statistics authority on Saturday showed that China's inflation growth eased to a 23-month low of 3 percent in May, providing more room for loosening.

Shares of the aircraft manufacturing and the environmental protection sectors rose the most. China Spacesat Co Ltd rose 6.62 percent to finish at 13.52 yuan per share, while Kelin Environmental Protection Equipment Inc surged by the 10-percent daily limit to 19.48 yuan.

Boosted by more transaction volumes and the interest rate cut on Friday, property developers rallied. Vanke, China's largest property developer, gained 3.14 percent to close at 9.2 yuan.