Shanghai surged to its biggest gains in two months as resources and property stocks benefited from the decision taken by China’s central bank to keep interest rates on hold.
The Shanghai Composite jumped 2.9 per cent to 2,922.95, lifting the pan-regional FTSE Asia-Pacific index by 0.5 per cent to 257.59, its highest level in more than a month and within striking distance of a 28-month peak.
Chinese stocks have slipped 7.5 per cent from a seven-month high reached in early November as investors priced in fears of monetary tightening policy moves to cool the economy.
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