China Shares Up For 2nd Day On Possible Yuan Rise

SHANGHAI (AP) — China's shares rose Monday on expectations the government might allow its yuan to rise against the dollar.

The benchmark Shanghai Composite Index rose 87.4 points, or 2.7 percent, to 3,275.05. The Shenzhen Composite Index for China's smaller second exchange 2.5 percent to 1,181.63.

U.S. President Barack Obama is expected to press Chinese leaders to ease exchange rate controls during his visit this week. The managing director of the International Monetary Fund said in a speech Monday in Beijing that a rise in the yuan, which could boost Chinese consumer spending, was needed for healthy global growth.

"Investors think Obama will push Chinese regulators to let the yuan rise," said Zhai Peng, an analyst for Guotai Junan Securities.

Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, rose 2.4 percent to 5.46 yuan. Bank of China Ltd. added 2.2 percent to 4.27 yuan.

Airlines rose on expectations that a stronger yuan would boost profits by cutting fuel costs in Chinese currency terms. Air China Ltd. surged 6.8 percent to 8.96 yuan, while China Southern Airlines Co. advanced 7.3 percent to 6.49 yuan.