Sept. 10 (Bloomberg) -- German stocks rose the most in two months as reports showed Chinese industrial output and retail sales climbed at a faster-than-expected pace in August, while concern waned that the U.S. will take military action in Syria.
Volkswagen AG and Porsche AG gained more than 3.5 percent as a gauge of carmakers climbed the most among the 19 industry groups in a regional equity benchmark. Kloeckner & Co. rose 3.1 percent after Jefferies Group LLC upgraded the steel trader.
The DAX Index advanced 2.1 percent to 8,446.54 at the close of trading in Frankfurt. The gauge increased 2.1 percent last week as manufacturing growth in the U.S. and China, the world’s two largest economies, beat projections. The broader HDAX Index increased 2 percent today.
“The latest data coming out of China is a clear indication that emerging markets are still in good shape,” said Robert Halver, head of capital-markets research at Baader Bank AG in Frankfurt. “For Germany, this rather good data from China is a reliable boost for German export-orientated companies.”
In China, industrial output rose 10.4 percent in August from a year earlier. Economists had predicted production would increase 9.9 percent after a 9.7 percent gain in July, according to the median estimate compiled by Bloomberg. Retail sales jumped 13.4 percent, compared with a projected 13.3 percent advance and a 13.2 percent gain the previous month.
U.S. President Barack Obama said on ABC News that he may postpone plans to launch a military strike in Syria if the regime of Bashar al-Assad complies with a Russian proposal to surrender its chemical weapons.
Volkswagen, Europe’s biggest automaker, advanced 4.1 percent to 178.05 euros. Porsche, a subsidiary of Volkswagen, added 3.7 percent to 67.61 euros. The China Association of Automobile Manufacturers said that passenger-vehicle sales climbed the most in four months in August. Wholesale deliveries increased 11 percent to 1.35 million vehicles last month.
Kloeckner gained 3.1 percent to 10.86 euros as Jefferies upgraded the shares to hold from underperform, which is similar to a sell rating. The brokerage said that the company’s margins have improved, so it will benefit more than some competitors when European demand for steel recovers. Jefferies increased its price forecast for the shares to 10 euros from 6.75 euros.
The volume of shares changing hands in companies listed on the DAX was 44 percent greater than the average of the last 30 days, according to data compiled by Bloomberg.
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