Stocks surge on stimulus rumor

SHANGHAI: The mainland stock market surged by over 6 percent yesterday to a four-month high on speculation that Premier Wen Jiabao may announce another round of fiscal measures worth 8 trillion yuan at the opening ceremony of the National People's Congress (NPC) today.

"Wen will announce a new stimulus package in his annual address to the national legislature," Li Deshui, former head of the National Bureau of Statistics, was quoted by Bloomberg.

The benchmark Shanghai Composite Index jumped 6.12 percent, or 126.68 points, to finish at 2,198.11, while the smaller Shenzhen Component Index rose 6.91 percent, or 532.07 points, to end at 8,227.69.