Chinese Shares up 1% As Recovery Signs Boost Confidence

The benchmark Shanghai Composite Index climbed 1.06 percent to 2,011.68. The Shenzhen Component Index was up 1.03 percent to 7,087.61.

Combined turnover was 94.95 billion yuan, slightly down from 95.27 billion yuan on the previous trading day of Jan. 23.

Gains led losses by 820 to 50 in Shanghai and 700 to 60 in Shenzhen.

Agricultural stocks took the lead, boosted by a government announcement that it would spur rural development. Hunan Dongting Aquaculture rose by the daily limit of 10 percent to 3.82 yuan. Shandong Minhe Animal Husbandry, the country's largest chicken breeder, was up 10.04 percent to 14.58 yuan.

The State Council and the Central Committee of the Communist Party of China jointly issued their first document of the year Sunday, in which they said "the development of agriculture and rural areas in 2009 is of special significance."

The document promised increased government spending to stimulate the rural economy. Last year, budgeted investment for agriculture and rural development grew 37.9 percent year-on-year to 595.55 billion yuan.

Shares of gold companies gained across the board following a price rise of the metal on world markets. Gold on the New York Mercantile Exchange closed at 926 U.S. dollars over the weekend, up 8 percent from the previous week.

Southeastern Fujian-based Zijin Mining Group, the country's biggest gold producer, was up 9.94 percent to 5.53 yuan. Tianjin-based Zhongjin Gold rose 10.01 percent to 39.99 yuan.

Recreation-related stocks edged up on news that both the number of tourists and tourism income of 19 major tourist destinations across China increased about 15 percent year-on-year during the Lunar New Year holiday.

China United Travel rose 2.72 percent to 3.4 yuan, while Guilin Tourism Corp. closed at 7.52 yuan, up 5.03 percent.