China Shares Hit 7-week High On Recovery Outlook

SHANGHAI (AP) — Chinese shares rose for a fourth day Wednesday, hitting a seven-week high on optimism about the economy's recovery.

The benchmark Shanghai Composite Index edged up 14.31 points, or 0.5 percent, to close at 3,128.54. The Shenzhen Composite Index for China's smaller second exchange added 0.7 percent to 1,112.35.

Investors were heartened after the World Bank raised its forecast for Chinese economy from 7.2 percent to 8.4 percent, reflecting the country's massive stimulus spending.

"This is certainly a boost on the market, together with the economic data released earlier," said Mao Sheng, an analyst for Huaxi Securities in the western city of Chengdu.

A business group reported Sunday that Chinese manufacturing expanded in October for an eighth month.

Metal shares rose on higher commodity prices. Jiangxi Copper Ltd., the country's biggest metal producer, added 1.5 percent to 40.30 yuan, while Aluminum Corp. of China surged 4 percent to 14.71 yuan.

Electronic and telecommunications companies soared after Premier Wen Jiabao stressed the importance of science and technology at a cabinet meeting Tuesday.