China is biggest mover

STOCK REPORT

China's CSI 300 Index rose above 4000 for the first time, driven by a surge in new investors who are ignoring warnings of a bubble to enter a market that's doubled this year.

The value of shares traded on the Shanghai and Shenzhen stock exchanges was a record $50.9 billion, exceeding the $43.9 billion that changed hands on the New York Stock Exchange on May 25.

The CSI 300 climbed 87.33, or 2.2 per cent, to close at 4072.58, posting the biggest fluctuation among equity markets included in global benchmarks. China International Marine Containers Co and Tsingtao Brewery Co were among 11 stocks to rise by the 10 per cent daily limit.

Chinese investors opened more than 300,000 accounts a day last week, even as former Federal Reserve Chairman Alan Greenspan called the rally unsustainable and said the market may undergo a "dramatic contraction."

Trading in Shanghai's yuan-denominated A shares reached a record 251.8 billion yuan ($32.9 billion) today, surpassing the previous high of 250.6 billion yuan set on May 9, according to data compiled by Bloomberg.

China Petroleum, Asia's biggest oil refiner, also known as Sinopec, jumped 0.67 yuan, or 5.4 percent, to 13.07.

The MSCI index rose 0.4 per cent to 148.28 at 6:22pm in Tokyo, ending a two-day, 1.5 per cent drop. Posco led steelmakers higher, adding to the rally in materials shares, after Meritz Securities Co raised its share-price estimate for the company.

Indexes in Australia, New Zealand and Taiwan were little changed. Sri Lanka was the only market that retreated.

Europe
Stocks rose in Europe paced by metal producers after copper rallied by the daily limit in Shanghai. BHP Billiton, the world's largest mining company, and Arcelor Mittal, the biggest steelmaker, paced the advance.

Banca Monte dei Paschi di Siena SpA, the world's oldest lender, led banks higher in Europe on speculation it may receive an offer. BHP Billiton advanced 1.5 per cent in Australia, as did Rio Tinto Group, the second-largest. Sumitomo Metal Mining Co, Japan's No. 2 copper smelter and biggest nickel producer, jumped 3.2 per cent.

US
Stocks in the US, home to the world's biggest market, closed higher on May 25, helping the S&P's 500 Index pare its first weekly decline since March. The market is closed today for Memorial Day.