SHANGHAI, China—Chinese stocks rose Monday in a post-holiday rebound that analysts said reflected growing confidence in the economy and official support for the markets.
The benchmark Shanghai Composite Index gained 1.8 percent, or 67.90 points, to 3,761.01. The Shenzhen Composite Index rose 2.9 percent to 1,130.00.
"Worries over first-quarter earnings reports have dissipated and the number of newly opened individual investor accounts has increased," said Zhang Xiuqi, an analyst at Guotai & Junan Securities in Shanghai.
"It looks like market sentiment is recovering," he said.
Comments by officials suggesting that inflation may have moderated have also eased worries over potential credit tightening, pushing up blue chips such as property developer China Vanke, which rose 3.2 percent to 25.16 yuan.
China's benchmark for inflation rose to 8.7 percent in February but fell back to 8.3 percent in March. State media have quoted officials saying that inflation may have dropped a bit further in April.
Also Monday, airlines and refiners advanced following the recent moderation in global crude oil prices.
China Eastern Airlines hit the daily 10 percent maximum limit at 11.79 yuan. Flag carrier Air China rose 1.5 percent to 16.31 yuan.
Major refiner China Petroleum & Chemical Corp. rose 4.9 percent to 13.17 yuan. Shanghai market heavyweight PetroChina rose 0.6 percent to 18.17 yuan.
In currency dealings, the U.S. dollar was trading at 6.9934 yuan late in the day on the over-the-counter market, up from its close of 6.9875 on Wednesday, the last trading day before the May Day national holiday.
