China's stocks rose, with the benchmark index indicating a bull market, as the economy showed signs of stabilization and the rollout of property curbs boosted the lure of equities.

The Shanghai Composite Index has advanced more than 20 percent from its Jan 28 low.

Gains this quarter have been led by commodity producers and construction companies, as the government boosts spending to bolster growth and the price of everything from coal to copper surges. The benchmark gauge has rallied more than 6 percent since the end of September as cities including Shanghai unveiled curbs to cool the housing market, while margin debt is also rising.

"Liquidity is abundant and property curbs will prompt more money to flow into stocks, which look undervalued relative to homes in large cities," said Li Jingyuan, general manager at Shanghai Bingsheng Asset Management. The benchmark gauge "may go as high as 3,900," Li said.

The Shanghai Composite has climbed for the past five weeks in a row, the best run of gains since May 2015. China Communications Construction Co, China State Construction Engineering Corp. and Jiangxi Copper have been among the biggest performers, surging more than 30 percent since the end of September.

While stocks have been rising, the yuan has tumbled to a six-year low and the 10-year yield on sovereign debt climbed to the highest level since July. Moves accelerated this week as Donald Trump's unexpected victory boosted the dollar amid speculation his policies will be inflationary, prompting the Federal Reserve to be more aggressive in raising interest rates.