Equities rally as economy concerns wane

SHANGHAI - Mainland stocks rallied, driving the benchmark index to its biggest gain since October, on speculation policymakers will rein in efforts to cool the economy as Europe's debt crisis threatens a global recovery.

China Vanke Co, the nation's biggest listed developer by market value, jumped 4.2 percent after an economic planning official said the nation should be cautious about introducing new tightening measures. Beiqi Foton Motor Co rose 6.3 percent after Shanghai Securities News reported the government will extend subsidies for trade-in vehicles to the end of this year.

"The market is expecting a softening in the government's stance on tightening given the uncertain outlook on global growth," said Larry Wan, Shanghai-based deputy chief investment officer at KBC-Goldstate Fund Management Co, which oversees about $583 million.