China stock index climbs as Europe debt woes ease

The benchmark Shanghai Composite Index gained 54.79 points, or 2.1 percent, to close at 2,710.51, its biggest gain since March 29. The Shenzhen Composite Index for China's smaller second exchange jumped 2.6 percent to 1,038.24.

Investors were relieved by Spain's deficit reduction plan, a possible step toward restoring fiscal health in the eurozone, a key Chinese market, analysts said.

“It had a large connection with the relief of European debt woes,” said Wen Lijun, an analyst for Nanjing Securities.

China Petroleum and Chemical Corp., also known as Sinopec, rose 3.1 percent to 9.3 yuan, while China Shenhua Energy Co., the country's biggest coal producer, climbed by 2.7 percent to 24.52 yuan.

Jiangxi Copper Ltd., China's biggest metal producer, posted a gain of 3 percent to 30.99 yuan, while Aluminum Corp. of China added 2.5 percent to 10.69 yuan.

Banks rose on rumors that an arm of China's sovereign wealth fund might buy more shares in big Chinese banks.

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