Shanghai shares end at highest in more than 1-1/2 years

(Reuters) - Shanghai shares eked out modest gains to end at their highest in more than 1-1/2 years on Monday, underpinned by prospects of further government stimulus to buttress a slowing economy.

The Shanghai Composite Index reversed earlier losses to rise 0.3 percent to 2,338.90 points, the highest close since March 6, 2013. The CSI300 of the leading Shanghai and Shenzhen A-share listings ended down 0.1 percent.

Data over the weekend showed softness in China's factory output,retail sales and urban investment, which raised fresh concerns about the health of the world's second-largest economy.

Inner Mongolia BaoTou Steel Union led gains among steel-makers. It jumped 5.6 percent and was the top contributor for both indexes.

The sector has had a strong rebound since last week, shrugging off a bearish outlook held by most brokers based on weak demand and lower steel prices.

Coal producers also outperformed after reports said central government agencies had a video conference recently on rescue measures for the industry.

Yanzhou Coal rose 1.6 percent and DaTong Coal Industry jumped 4.7 percent.

Courtesy : Reuters