China stocks rise 1.3 pct on strong mfg surveys

SHANGHAI Dec 1 (Reuters) - China's key stock index rose 1.27 percent on Tuesday, with steel, environment-related and airline shares strong, as upbeat manufacturing surveys bolstered sentiment despite the prospect of new share supplies.

The Shanghai Composite Index .SSEC ended at 3,235.363 points, extending the previous day's 3.2 percent rise, its biggest one-day percentage gain in more than seven weeks.

Gaining Shanghai A shares outnumbered losers by 863 to 38 while turnover picked up to 190 billion yuan ($27.83 billion) from Monday's 159 billion yuan.

Strong readings in two purchasing managers indexes released on Tuesday confirmed that China's economy had largely recovered from the global downturn. [ID:nPEK127087]

The steel sector was buoyed by rising steel prices and a rosy economic outlook, with Baoshan Iron and Steel (600019.SS) jumping 7.83 percent to 8.81 yuan. ($1=6.826 Yuan) (Reporting by Claire Zhang and Edmund Klamann) ((junjie.zhang@thomsonreuters.com; (8621) 6104-1775)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit topnews.session.rservices.com * BridgeStation: view story .134 * Reuters Plus: from your WebDSS screen For more information on Top News, visit topnews.reuters.com)) Hong Kong report [.HK] Taiwan report [.TW] Shanghai indices <0#.INX.SS> Shenzhen indices <0#.INX.SZ> Hong Kong indices <0#.INX.HK> H-share index .HSCE Red share index .HSCC SPEED GUIDES REUTER CHINA EQUITY <EQUITY/NEWS1> RELATED NEWS AND OTHER TOPICS China news [CN] All equity news [E] Greater China news [Z] Chinese summary [TOP/CN] Hong Kong news [HK] Chinese hot stocks [CN-HOT] Taiwan news [TW] China IPOs [CN-IPO] Chinese diary [CN/DIARY] Hong Kong IPOs [HK/IPO] Press digests [PRESS/CN] [PRESS/HK] [PRESS/TW] ($1=6.827 Yuan) ($1=6.826 Yuan)