Chinese stocks rose Thursday on late-session bargain-hunting, although worries over inflation and rising oil prices capped gains, according to The Associated Press. The benchmark Shanghai Composite Index climbed 2.2 percent, or 77.69 points, to 3,656.84, after dropping 4.1 percent on Wednesday. The Shenzhen Composite Index rose 2.7 percent to 1,102.52 after falling 4.4 percent the day before. Investors optimistic about China's economic outlook opted to seek bargains among blue chips after they fell sharply in the previous session, analysts said. China Life Insurance rose 2.1 percent to 34.19 yuan after falling 8.0 percent on Wednesday, while Baoshan Iron & Steel gained 2.9 percent to 13.33 yuan after losing 6.2 percent a day earlier. Daqin Railway jumped 4.4 percent to 17.13 yuan after sliding 4.5 percent Wednesday, while China Shenhua Energy climbed 6.3 percent to 50.77 yuan after falling 3.3 percent in the previous session. Airlines and refineries underperformed the general market on concerns over rising costs brought about by high oil prices. Investors are also concerned that rising crude oil prices are adding to China's already serious inflationary pressures. China Eastern Airlines edged up 0.9 percent to 10.80 yuan; refiner China Petroleum & Chemical, or Sinopec, rose 0.2 percent to 12.54 yuan and PetroChina gained 0.3 percent to 17.99 yuan. «Investors are split on the outlook for inflation: some expect the consumer price index rise to start easing, while others believe that the CPI will remain at high levels,» said Wang Junqing, an analyst at Guosen Securities. Crude oil futures on the New York Mercantile Exchange ended above $123 per barrel overnight.
