SHANGHAI stocks jumped more than 2 percent yesterday in their best session in a month as stronger-than-expected November factory activity lifted sentiment without dashing hopes of fresh stimulus.

    Overcoming an early morning wobble, the Shanghai Composite Index ended up 2.51 percent at 3,520.67 points, posting its best performance since Nov. 4. The blue-chip CSI300 index jumped 2.9 percent to 3,711.32.

    Investors were encouraged by signs of economic stabilization after data released over the weekend showed China’s factory output growth picked up to a five-month high, beating market expectations.

    Nonetheless, not all held an optimistic view of the economy.

    “We believe the faster growth in industrial production is transitory as the headwinds from industry overcapacity remain,” Barclays said in a report yesterday. “We continue to look for more fiscal and monetary easing to support growth.”

    Stocks rose across the board, with industrial, infrastructure and real estate shares among the biggest gainers.

    Resource shares also bounced sharply, even as seven companies in the sector were removed from the flagship CSI300 index yesterday in a constituent adjustment that reflects changing investor preference. (SD-Agencies)