The benchmark Shanghai Composite Index rose by 3.3% on Monday to 2,559.91, its highest close since early August, Bloomberg reported. Investors were cheered by reports that manufacturing on the mainland expanded in April for the first time in nine months, suggesting that the country’s stimulus package was taking effect and reviving the economy. The CLSA Purchasing Managers Index for April rose to 50.1 from 44.8 the previous month. A score above 50 indicates expansion. Earlier, the China Purchasing Managers Index put out by the China Federation of Logistics and Purchasing had also registered improvement in manufacturing activity. Baoshan Iron & Steel rose by 4.5% and refiner China Petroleum & Chemical Corp gained 3.6% after the government said it would attempt to address overcapacity in the steelmaking and oil refining industries. Hong Kong’s Hang Seng Index rose by 5.54% on Monday to close at 16,381.05. It was the first time the index had broken through the 16,000-point ceiling in half a year, and was the largest one-day gain in a month.