Steelmakers strengthen Shanghai equities

Nikkei:10,808.29 (+61.62) Hang Seng:23,156.97 (+257.19) Shanghai Comp:2,924.19 (+24.95)

SHANGHAI STOCKS hit two-month highs yesterday on steelmaker strength, while Tokyo’s winning streak was extended as a weaker yen gave a broad boost to shares.

Steelmakers were buoyed after Wuhan Iron Steel, China’s third-largest producer, joined Baoshan Iron Steel, the biggest publicly listed group in the sector, in rasing prices for March delivery of steel products.

Wuhan Steel rose 1.6 per cent to Rmb4.60, while Baosteel, which was raising its prices for a third month on higher demand, jumped 2.8 per cent to Rmb7.38.

Changsha Zoomlion Heavy Industry surged the most in three months, up 6.7 per cent to Rmb15.05, after Credit Suisse said the machinery maker would benefit as investment drives growth. But Poly Real Estate led falls for developers, sliding 1.2 per cent to Rmb13.31, after China’s banking regulator said loans should be prevented from flowing into speculation.

Elsewhere, BHP Billiton, the world’s largest mining company, sank 1.8 per cent to A$46.52 in spite of a $10 billion share buyback. – (Copyright The Financial Times Limited 2011)