SHANGHAI stocks consolidated yesterday and closed at a two-month high as investors were upbeat ahead of the release of inflation data while the latest US employment data indicated green shoots of an economic recovery.

The Shanghai Composite index edged up 0.03 percent to 2,331.14, the highest since December 7.

The National Statistics Bureau will unveil the Consumer Price Index for January on Thursday. The CPI, a key gauge of inflation, may grow 4.1 percent from a year earlier, the same pace as last December's, as the government's efforts to curb price increases gradually paid off.

Hu Xiaohui, an analyst at Datong Securities, predicted that the market's rebound will continue as the central government may loosen monetary policy soon.

Lenders were mixed. China CITIC Bank rose 0.23 percent to 4.44 yuan and the Bank of Communications gained 1.02 percent to 5.08 yuan. The Bank of China slid 0.98 percent to 3.03 yuan.

The US Labor Department reported last week that the world's largest economy added 243,000 jobs in January, the biggest gain in nine months, sending its jobless rate down to 8.3 percent compared with December's 8.5 percent.

Export-related stocks gained in anticipation that external demand may rise following the revival of business activities globally.

Zhongchang Marine jumped 2.88 percent to 6.78 yuan on improved outlook for China's exports. China Shipping Container Lines added 1.09 percent to 2.78 yuan and COSCO Shipping Co gained 0.91 percent to 4.43 yuan.

Source:shanghaidaily