China Shares Hit 12-week High On Recovery Hopes

SHANGHAI (AP) — Chinese shares rose for a fifth day to a 12-week high Thursday, extending gains on optimism about the country's economic recovery.

The benchmark Shanghai Composite Index edged up 26.52 points, or 0.9 percent, to close at 3,155.05. The Shenzhen Composite Index for China's smaller second exchange added 0.4 percent to 1,117.23.

"Investors in general were optimistic because stimulus-driven investment will keep companies profitable through out the year," said Mao Nan, an analyst for Oriental Securities in Shanghai.

The U.S. Federal Reserve's decision to leave a key interest rate unchanged had little impact on Chinese markets, analysts said.

The World Bank on Wednesday raised its forecast for China's economic growth this year from 7.2 percent to 8.4 percent, reflecting the country's massive stimulus measures.

Financial and resources, shares closely linked with economic growth, helped to boost the benchmark.

Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, added 1.4 percent to 5.27 yuan. Bank of China Ltd. gained 1.2 percent to 4.2 yuan, while China Construction Bank Ltd. rose 0.7 percent to 6 yuan.