China shares rise but underperform Asia, banks support

Wed Jan 29, 2014 2:03am EST

Jan 29 (Reuters) - China shares extended a rebound on Wednesday, with the financial sector buoying a second-straight day of index gains ahead of a week-long Lunar New Year holiday starting on Friday.

The Shanghai Composite Index, which suffered its biggest loss in three weeks on Monday, finished up 0.6 percent at 2,049.9 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings crept up 0.4 percent.

Still, mainland markets underperformed most of Asia as short-term cash rates crept higher ahead of the holiday after the Chinese central bank was seen likely to stand pat at Thursday's open market operations. (Reporting by Clement Tan in SINGAPORE; Editing by Jacqueline Wong)

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