China shares rebound on better US jobs figures

Chinese shares rebounded Monday as better U.S. job figures eased worries about the global economy.

The benchmark Shanghai Composite Index jumped 40.86 points, or 1.5 percent, to close at 2,696.25. The Shenzhen Composite Index for China's smaller second exchange ended flat at 1,178.35.

Investors were heartened after a U.S. government report last week showed private employers added more jobs than expected in August, analysts said.

"Optimism about the world's economy and China's economy was rekindled, because it seems the United States is on a recovery track," said Zhang Fan, an analyst for Debon Securities in Shanghai.

Blue chip shares clawed back some losses.

Jiangxi Copper Ltd., China's biggest metal producer, rose 2.9 percent to 32 yuan, while Aluminum Corp. of China, or Chinalco, added 2 percent to 10.27 yuan.

Insurers rebounded after China's regulator announced they are now allowed to invest in stocks. Ping An Insurance Co., China's second-biggest insurer, climbed by 4.4 percent to 51.04 yuan, while China Life Insurance Ltd. rose 2.8 percent to 22.81 yuan.

Steelmakers gained on expectations coke prices might fall, cutting costs. Liuzhou Iron & Steel Co. surged 8.4 percent to 6.08 yuan. Baoshan Iron & Steel Co., China's biggest steel producer, gained 7.2 percent to 6.99 yuan.

In currency markets, the yuan strengthened to 6.7880 to the U.S. dollar from Friday's close of 6.8023.