China’s Stocks Rise for Second Day, Led by Commodity Producers

May 27 (Bloomberg) -- China’s stocks rose for a second day, led by commodity producers, on speculation Europe’s debt crisis will stop the government from further tightening monetary policy.

Jiangxi Copper Co. and Aluminum Corp. of China Ltd., the nation’s biggest makers of copper and aluminum, advanced at least 3 percent as metal prices increased. China Life Insurance Co. added 1.9 percent and Ping An Insurance (Group) Co. gained 1.2 percent after the China Securities Journal said insurers’ caps on equity investments may be raised.

The market is pricing in a “policy misstep” by China’s government, Jerry Lou, Morgan Stanley’s China strategist, said in a Bloomberg Television interview. “The whole market is a buy” as concerns are overstated, he said.

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, climbed 30.13, or 1.2 percent, to 2,655.92 at the close. The CSI 300 Index added 1.6 percent to 2,859.98.