| Shanghai stocks up as global markets rebound |
SHANGHAI, Aug. 20 -- SHANGHAI stocks rallied to a new high today as Asian markets surged following Wall Street's rebound at the end of last week.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, jumped 5.33 percent, the biggest growth since January 9, to close at 4904.85.
The Shenzhen Composite Index, which covers the smaller mainland stock market, rose 4.53 percent, or 58.80 points, to 1,356.02.
Blue chips, especially steel and bank stocks, recouped from earlier losses.
Baoshan Iron & Steel Co, the country's biggest steel maker, rose 10 percent, the daily limit, to 16.23 yuan (US$2.14) a share, while Angang Steel also jumped 10 percent to 28.71 yuan.
Shares of Wuhan Iron & Steel Co, China's third-biggest steel maker by market value, surged 9.98 percent to 15.21 yuan, while Ma'anshan Iron & Steel Co Ltd rose 10 percent to close at 10.20 yuan.
Industrial and Commercial Bank of China surged 9.75 percent to 7.09 yuan and Huaxia Bank Co Ltd rose 10 percent to 18.67 yuan.
China Merchants Bank surged 8.73 percent to 35.98 yuan and Bank of China rose 5.9 percent to 6.10 yuan.
China Vanke Co, the nation's largest listed developer, rose 7.2 percent to 33.07 yuan, while Poly Real Estate Group Co rose 5.67 percent to 73.45 yuan.
Other key stock indexes in Asia also reported large gains.
The Nikkei 225 rose three percent, or 458.80 points, to 15,732.48 points on the Tokyo Stock Exchange. On Friday, the index lost 5.42 percent, or 874.81 points, its largest one-day point loss since it gave up 1,426.04 points on April 17, 2000.
The Korea Composite Stock Price Index rose 5.7 percent, or 93.20 points, to close at 1,731.27. It was also the biggest percentage gain in more than five years, according to the Korea Exchange.
On Friday in New York, the Dow Jones industrial average surged 1.82 percent, or 233.30 points, to 13,079.08 after the Fed cut its key discount rate a half percentage point to calm subprime-induced credit worries.
The central bank reduced the rate at which it makes direct loans to banks by 0.5 percentage point to 5.75 percent. Policy makers kept their benchmark federal funds rate target unchanged at 5.25 percent.
It was the first reduction in borrowing costs between scheduled meetings of the Federal Open Market Committee since 2001 and Ben S. Bernanke's first as Fed chairman.
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