Stock market surges to new high amid economic revival

SHANGHAI: China's benchmark stock index - led by steel and nonferrous heavyweights - closed at a new, 14-month high yesterday, due to manufacturing data that signals an economic revival.

The Shanghai Composite Index rose 1.48 percent, or 50.53 points, to 3462.59 -more than double last year's low in November. The smaller Shenzhen Component Index ended up 1.36 percent, or 186.27 points, at 13856.99. The combined turnover on the two bourses was a 6.6 percent increase from last Friday, to 358.9 billion yuan ($52.5 billion).

The lead indicator has gained 6 percent in three consecutive trading days, erasing a drop of 5 percent on July 29, when concerns about possible credit-tightening triggered a sell-off.