China's efforts to curb inflation boost stocks

Stocks posted slight gains Friday after China took more steps to curb inflation, which traders fear could slow down the country's growth.

China ordered its banks to hold more reserves, the second time in the past two weeks. The goal is to curb lending and avoid speculative bubbles. Inflation in China shot up to a more than two-year high last month. Investors also expect China to raise key interest rates as part of its effort to control inflation.

"As long as the Chinese government takes more restrictive actions, that's going to be somewhat of a roadblock for equities," said Alan Gayle, a senior investment strategist at RidgeWorth Investments.

The Dow Jones industrial average rose 22.32 points, or 0.2 percent, to 11,203.55. The Standard & Poor's 500 index rose 3.04, or 0.3 percent, to 1,199.73. The Nasdaq composite index rose 3.72, or 0.2 percent, to 2,518.12.

The euro rose 0.3 percent to $1.36 against the dollar amid signs that Ireland was closer to agreeing to a bailout. Ireland's finances have been decimated after it nationalized three of its six banks following the collapse of a real estate boom.

Treasury prices were mixed. The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.87 percent from 2.90 percent Thursday.- AP