China’s Shanghai Composite set to close at highest in six years

Traders are betting on monetary policy loosening by the People’s Bank of China in the coming months.

SHANGHAI: Chinese stocks briefly surpassed a February peak, as a phone call between U.S. and Chinese leaders added to investor optimism that’s also been bolstered by hopes on steps to boost economic growth.

The Shanghai Composite Index jumped as much as 0.8% to 3722.9, on track to close at the highest level since August 2015. The rally was driven by the conglomerate sector, which includes the country’s largest banks such as Industrial & Commercial Bank of China. Property developer Metro Land Corp. jumped by the 10% daily limit for a sixth straight session to be one of the best performers in the gauge.