DHAKA: Chinese stocks have rallied to a three-week high, as investors bet that mainland shares will be included in a global index next month.

The Shanghai Composite rose 2.67% to 2,898 points, with shares of financial companies leading the list of gainers.

That is on market expectations that the MSCI Emerging Market Index will include Chinese shares.

The move, if it happens, would boost sentiment for Chinese stocks at an international level.

The positive sentiment also flowed into neighboring Hong Kong, where the benchmark Hang Seng index gained 1.3% - or 270.16 points - to 20,898.20.

Elsewhere in Asia, Japan’s benchmark Nikkei 225 rose 0.49% - or 83.93 points - at the midday mark to 17,151.95 points.

Latest data from Japan showed household spending fell 0.4% in April, compared to the previous year.

Meanwhile industrial output showed a surprise 0.3% rise for April, compared with forecasts for a 1.5% drop.

The increase in industrial production came despite earthquakes which hit the Kumamoto prefecture in April, a major manufacturing hub for big Japanese firms, including Sony and carmaker Toyota.

BDST: 1208 HRS, MAY 31, 2016
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