Healthy fundamentals fuel rally in prices

Stock prices surged the most in five weeks as miners rallied on the prospect of production cuts to bolster prices and data showed the world's second-biggest economy is stabilizing.

The Shanghai Composite Index climbed 2.5 percent to 3,520.67 points at the close. Material producers and financial companies jumped the most among industry groups. China's aluminum smelters pledged on Friday to halt new mills and forecast that the nation's idled capacity would rise by the end of the year.

Data over the weekend showed industrial output, retail sales and fixed-asset investment all exceeding economists' forecasts after policymakers unleashed several rounds of monetary and fiscal stimulus. Chinese smelters probably need restructuring to shore up long-term prices by reducing oversupply, closing old plants and upgrading their product mix, according to Bloomberg Intelligence analysts.