By Xiao Yu and Shidong Zhang
March 20 (Bloomberg) -- Zhongjin Gold Co. and Yunnan Copper Industry Co. led gains by Chinese commodities producers as investors bought more metals on concern U.S. government efforts to revive the economy will drive inflation.
Zhongjin Gold rose 8 percent to 56.20 yuan in Shanghai at 10:44 a.m. local time, after earlier surging as much as 10 percent. Yunnan Copper, the nation’s third-biggest producer of the metal, advanced 8 percent to 18.06 yuan in Shenzhen trading.
The Reuters/Jefferies CRB Index, which tracks 19 commodities, yesterday jumped the most this year as investors bought raw material contracts as a hedge against inflation. The Federal Reserve this week said it may buy more than $1 trillion in government and mortgage debt to help end the recession and credit crisis.
“Commodities prices jumped on the U.S. government’s plan to stimulate the economy,” Le Yukun, an analyst at BOC International Ltd., said from Shanghai. “Commodity stocks are a haven as investors worry about inflation and the declining U.S. dollar.”
Zijin Mining Group Co., the country’s largest bullion producer, jumped as much as 9.3 percent in Shanghai. Jiangxi Copper Co. climbed 5.3 percent in Shanghai trading. Aluminum Corp. of China rose as much as 8 percent in Hong Kong trading.
Every commodity in the Reuters/Jefferies CRB Index climbed yesterday while the dollar fell. Gold for immediate delivery yesterday gained 1.9 percent to $959.85 an ounce, the highest close in almost a month.
Copper futures jumped 3.6 percent to $3,985 a metric ton yesterday, the highest since Nov. 5. The metal rose to $4,000 a ton today.
To contact the reporters on this story: Shidong Zhang in Shanghai at szhang5@bloomberg.net; Xiao Yu in Beijing at yxiao@bloomberg.net
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