Stocks hit three-month high amid signs of recovery

Mainland stocks advanced to a three-month high on Tuesday, led by technology and consumer-discretionary companies, as investors took heart from signs the world's second-largest economy is stabilizing.

The Shanghai Composite Index gained 1.5 percent, climbing for a fourth day, as trading resumed after Monday's holiday. Hundsun Technologies Inc surged by the day's limit as a gauge of technology shares increased the most among industry groups. PetroChina Co paced losses for mainland shares in Hong Kong as crude retreated for a third day. The premium that A shares have over their counterparts in Hong Kong rose to the highest level in six weeks.

The Shanghai measure capped its longest streak of weekly gains since October amid signs China's economy and currency are stabilizing. An official factory gauge last week showed improving conditions for the first time in eight months, suggesting the government's fiscal and monetary stimulus is kicking in. The stocks rebound will continue for another month or two, according to Credit Suisse Group AG.