Reuters reported that Chinese steel and iron ore futures hit three week highs reflecting optimism that demand for the two commodities will perk up as the world's top consumer heads into the seasonally brisk consumption period over the next two months.

Dalian iron ore jumped as much as 3.9% and Shanghai rebar rose nearly 2%.

The most active rebar for October delivery on the Shanghai Futures Exchange closed up 1.2% at CNY 3,328 per tonne after touching a session high of CNY 3,346 its loftiest since March 7.

The most traded September iron ore contract on the Dalian Commodity Exchange climbed as much as 3.9% to reach its daily upside limit of CNY 799 per tonne, its highest since March 6. It closed 3.3% higher at CNY 794. But it was still down 2.2% for the month, its fourth monthly fall in a row since the Dalian bourse launched iron ore futures in October.

Hopes that China will move to stimulate a slowing economy, including forging ahead with infrastructure investment, also supported investor sentiment.

Mr Zhou Ting analyst at Jinrui Futures in Shenzhen said that "Traders are trying to restock steel in anticipation of consumption going up in April. Steel demand in China usually strengthens in April and May along with construction activity, while investors are also anticipating the government will boost the economy following recent weak manufacturing and trade indicators.

There's some expectation of increased investment in infrastructure to prevent the economy from slowing further. The aim is to boost consumption in the long run but for the economy to expand in the short term, the government needs to continue to invest."

Mr Li Keqiang Premier of China sought on Friday to reassure jittery global investors that Beijing was ready to support the cooling economy, saying the government had the necessary policies in place and would push ahead with infrastructure investment.