Chinese stocks closed higher Thursday boosted by auto and home appliance producers following reports of strong sales data.
The benchmark Shanghai Composite Index added 1.59 percent, or 44.10 points, to 2,818.16 points.
The Shenzhen Component Index rose 3.07 percent, or 362.59 points, to 12,170.51 points.
Combined turnover expanded to 200.16 billion yuan (30.33 billion U.S. dollars) from 171.2 billion yuan on the previous trading day.
Jiangling Motors Co. Ltd. surged by its daily limit of 10 percent to 28.73 yuan after its January sales rose 40 percent year on year to 2,0966 units. The Shanghai-based SAIC Motors also increased by its daily limit of 10 percent to 18.37 yuan, after its January sales jumped 47 percent from a year ago to 13,2783 units.
Midea Group, China's major home appliance maker, surged by 10 percent to 18.11 yuan, boosted by strong sales during the New Year holiday and Spring Festival. Haier Group rose 7.45 percent to 27.40 yuan.
In a bid to rein in inflation, the People's Bank of China (PBOC), the central bank, raised benchmark one-year borrowing and lending rates by 25 basis points on Wednesday.
China's State Council, the nation's cabinet, pledged Wednesday to step up efforts to boost grain production as relentless droughts continue to wreak havoc in north China's wheat growing regions, which are also aimed to ease inflation.
Analysts predict the February Consumer Price Index will rise more than 5 percent.
"Investors should remain cautious until inflation begins to ease," Jinri Securities said in a note to clients.
The Industrial and Commercial Bank of China (ICBC), the country's largest bank by market value, added 0.71 percent to 4.27 yuan. China Construction Bank rose 1.04 percent to 4.86 yuan.
