Stocks rise on spending hopes

Chinese stocks rose as industrial companies jumped on prospects the government will boost spending on railways to bridges, while optimism the start of a Shenzhen-Hong Kong exchange link is imminent lifted brokerages.

The Shanghai Composite Index climbed 0.8 percent at the close. A gauge of industrial shares surged 2.4 percent, the biggest gain since Aug 15, as China Communications Construction Co and China Railway Group Ltd rallied more than 5 percent. Guoyuan Securities Co rose to its highest level in almost a year to lead financial companies higher.

Industrial, construction and State-owned firms have powered gains in the Shanghai Composite Index in recent weeks as investors bet that the government will favor infrastructure projects and fiscal spending to bolster growth.