Stocks hit 10-month high, led by financials

The mainland stocks gained, driving the benchmark index's advance this year to 53 percent, as financial companies and commodity producers rose on optimism an economic recovery will fuel demand for housing and raw materials.

"Equities and property assets are still good investments as the economy recovers," said Zheng Tuo, a Shanghai-based fund manager at Bank of Communications Schroder Fund Management Co, which oversees about $6.5 billion. "There are a lot of positive factors such as loose monetary policy and government support."

The Shanghai Composite Index rose 54.29, or 2 percent, to 2778.59 at the close, the highest since Aug 1. The CSI 300 Index gained 2.6 percent to 2939.39.