Stocks rally on interest rate reduction

The mainland's main stock index ended 2.55 percent higher yesterday, led by large caps after China cut interest rates for the third time in six weeks while drawing strength from a surge in regional markets.

The benchmark Shanghai Composite Index closed at 1763.607 points, rebounding after falling nearly 3 percent on Wednesday to its lowest close in 25 months.

Turnover in Shanghai A shares was light at 35.3 billion yuan, little changed from Wednesday's total as investors remained wary of the market due to weak corporate earnings and a faltering economy.