Oil, steel, and nonferrous metals led the recovery. PetroChina, which accounts for nearly a quarter of the total weight of the benchmark index, added 1.20 percent to 29.59 yuan. Sinopec, the nation's largest oil refiner, jumped 2.76 percent to 21.57 yuan.

    Steel stocks rose after earlier heavy losses and also amid expectation that supply of steel products will be tight in 2008 after the closing of many small out-dated steel plants, said analysts.

    Baoshan Iron and Steel, China's largest steel producer, gained 4.74 percent to 16.79 yuan.

    Stocks of nonferrous metals rose after Aluminum Corp of China Ltd, known as Chalco, raised spot price of oxide aluminum by 400 yuan to 4,200 yuan per tonne.

    Chalco added 3.00 percent to 37.39 yuan and Baotou Aluminium Co. surged 6.28 percent to 52.12 yuan.

    Financial and property stocks also posted strong gains after recent sell-off.

    Heavyweights Industrial and Commercial Bank of China rose 2.34 percent to 7.88 yuan and China Life added 3.04 percent to 56.63 yuan.

    Citic Securities, the nation's largest listed brokerage, gained3.98 percent to 82.28 yuan.

    Shanghai Lujiazui Finance and Trade Zone Development Co. was up5.02 percent to 23.42 yuan.