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July 26 (Bloomberg) -- Baidu Inc. jumped as earnings beat estimates, leading a rally in Chinese equities traded in New York. Sina Corp. gained after Facebook Inc.’s results topped forecasts, boosting the outlook for social-media companies.

The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. rose 2 percent to 92.63, advancing for the eighth time in nine days. Baidu gained the most in three years and Sina, China’s biggest Twitter-like service provider, climbed to a 10-month high. Social network operator YY Inc. reached a record.

Barclays Plc raised its recommendation on Baidu to buy from hold after China’s biggest search engine operator reported second-quarter profit that exceeded analysts’ projections and forecast better-than-estimated revenue. At least five other brokerages raised their price targets for Baidu’s American depositary receipts to as high as $157, according to data compiled by Bloomberg.

“The trend in the mobile business is encouraging,” Henry Guo, an analyst at ABR Investment Strategy LLC in San Francisco, said by phone yesterday. “Like Facebook, the key for Baidu’s success is its mobile strategy and execution.”

The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., climbed 0.9 percent to $34.64, up for a third day this week. The Standard & Poor’s 500 Index rose 0.3 percent as investors weighed corporate earnings and reports showing durable-goods order and jobless claims rose.

Baidu jumped 11 percent to $125.85, the highest close since August.

Mobile Revenue

The Beijing-based company reported net income of 2.64 billion yuan ($431 million), compared with the 2.6 billion-yuan average of eight analysts’ estimates compiled by Bloomberg. Revenue rose 39 percent to 7.56 billion yuan as advertisers spent more to reach out to mobile users.

More than 10 percent of revenue in the quarter came from mobile devices, with most of that generated through advertising sales on its search app for smartphones and tablets, Chief Financial Officer Jennifer Li said in an earnings call.

The result followed two quarters of earnings trailing analysts’ forecasts as the company increased spending to fend off challenges from rivals including Qihoo 360 Technology Co.

“We’ve seen the worst,” Chris Bertelsen, Chief Investment Officer of Global Financial Private Capital, a Sarasota-based wealth manager with a $2 billion in assets, said in a telephone interview. “You’ll get some pretty good appreciations in the stocks.”

Barclays raised its rating on Baidu to the equivalent of buy from hold, with a price target of $153. Pacific Crest Securities LLC. boosted its target to $157 from $140.

Social Networks

Guangzhou-based YY led a rally in Internet stocks after Menlo Park, California-based Facebook posted a 53 percent surge in second-quarter revenue on July 24.

YY increased 11 percent to a record $39.35, while Sina rose 3.5 percent to $66.53, the highest since September. Online book retailer E-Commerce China Dangdang Inc. jumped 8.7 percent to $8.75, the highest since April 2012.

American depositary receipts of Melco Crown Entertainment Ltd., which operates casinos in Macau, fell 0.8 percent to $23.74. The ADRs traded 2.3 percent below to its equivalent shares in Hong Kong.

The Hang Seng China Enterprises Index in Hong Kong fell 0.3 percent to 9,752.6, while the Shanghai Composite Index slid 0.6 percent to 2,021.174 in a second day of declines.

To contact the reporters on this story: Belinda Cao in New York at; Ye Xie in New York at

To contact the editor responsible for this story: Brendan Walsh at

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