By Robert Brand - 2012-05-29T07:02:51Z

The rand gained for a second day after policy makers in China pledged new spending to boost economic growth, boosting commodity prices before the release of data that may show Africa’s biggest economy is slowing.

South Africa’s currency climbed 0.2 percent to 8.3274 per dollar as of 8:37 a.m. in Johannesburg. Yields on the nation’s 6.75 percent bonds due 2021 were unchanged at 7.69 percent.

China’s finance ministry said it will subsidize the use of energy-saving products, a further step in the government’s efforts to increase consumer demand and stimulate the slowing economy. China is South Africa’s biggest trading partner, buying 13 percent of the nation’s exports. The worsening debt crisis in Europe and slowing growth in China are dragging down mining and manufacturing growth in South Africa, Finance Minister Pravin Gordhan said on May 18.

“Risk appetite is being supported by growing optimism that China will take steps to boost growth in its economy,” Nomvuyo Guma, a currency strategist at Standard Bank Group Ltd. in Johannesburg, said in e-mailed comments.

Gross domestic product growth slowed to 2.3 percent in the first quarter, from 3.2 percent, according to the median estimate of economists in a Bloomberg survey. A figure below that estimate may result in rand weakness as foreign investors sell South African equities, Guma said.

“While the rand is, as ever, likely to track developments in Europe, today’s GDP data will sway the focus somewhat,” Guma said.

Standard & Poor’s GSCI Index of raw materials gained for a third day as the prices of metals including copper and nickel rose. Metals and other commodities account for 45 percent of South Africa’s exports, according to government data for 2011.

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