China Shares Up On Stronger Manufacturing Data

SHANGHAI (AP) — Chinese shares rose for a second day Monday on stronger manufacturing data for October and higher bank earnings for the third quarter.

The benchmark Shanghai Composite Index jumped 80.8 points, or 2.7 percent, to close at 3,076.65. The Shenzhen Composite Index for China's second exchange leapt 3 percent to 1,085.65.

China's purchasing managers index expanded for the eighth straight month in October to 55.2, adding to further signs the recovering economy is on firmer ground, a survey by a government-sanctioned industry group said Sunday.

"The momentum of economic recovery strongly supported the market," said Zhang Gang, an analyst for Central China Securities in Shanghai.

Bank shares increased on higher-than-expected third quarter profits announced last week.

Industrial & Commercial Bank of China Ltd., China's biggest commercial lender, added 3 percent to 5.21 yuan. Bank of China Ltd. climbed 2.2 percent to 4.15 yuan, while China Construction Bank Ltd. gained 2 percent to 5.97 yuan. Midsize lender Shenzhen Development Bank Ltd. surged the daily maximum of 10 percent to 24.73 yuan.