Equities surge as large-cap financials lead gains

Chinese mainland stocks rose the most in a month as financial companies rallied on prospects for monetary stimulus. Small-cap technology shares tumbled before the first initial public offerings in five months.

The Shanghai Composite Index climbed 2.3 percent to 3,536.91 points at the close, while the CSI 300 Index advanced 3.6 percent. China Life Insurance Co, China Vanke Co and China CITIC Bank Corp all surged by the 10 percent daily limit. The ChiNext index of technology shares lost 1.6 percent. The central bank stepped up cash injections via open-market operations on Tuesday as the restart of new share sales drove demand for funds.

Speculation has intensified the central bank will add to the six interest-rate cuts since November last year amid a recent raft of indicators signaling a deepening economic slowdown, including falling exports, declining producer prices and slowing industrial output. Manufacturing conditions are at the weakest level in more than three years, official data showed on Tuesday.