China's Stocks Rise to Two-Month High as Defense Shares Rally

  • Shipbuilders jump as U.S. warship sails near Spratlys
  • Industrial companies' profits retreated in September
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China’s stocks rose, reversing losses in the last 30 minutes of trading, as technology shares rebounded and defense-related companies advanced after a U.S. navy patrol sailed close to islands claimed by Beijing.

The Shanghai Composite Index added 0.1 percent to 3,434.34 at the close, erasing a slump of as much as 2.8 percent. Aerospace Communications Holdings Group Co. and China Shipbuilding Industry Co. both jumped more than 8 percent. Commodity producers declined, with Anhui Conch Cement Co. slipping 0.9 percent after reporting lower profit.