China Stocks Surge as Trade Relations Thaw
Chinese and Hong Kong stocks rose with gains in rare earth and tourism shares, fueled by improving U.S.-China relations. The Shanghai Composite and Hang Seng indices reached new highs as investor sentiment improved. Buoyed by policy efforts and trade optimism, Chinese stocks near a technical bull market.
Stocks in China and Hong Kong experienced a significant boost on Thursday, driven by a rally in rare earth and tourism shares. Investor sentiment was lifted by indications of easing tensions between the U.S. and China, suggesting a positive shift in economic relations.
The Shanghai Composite index rose by 0.7%, closing at 3,605.73, marking its highest level since January 2022 and nearing a fifth consecutive week of gains. Similarly, the blue-chip CSI300 index increased by 0.7%, indicative of steady, robust performance in the market.
In Hong Kong, the Hang Seng Index increased 0.5% to 25,667.18, achieving its highest close since November 2021. Analysts noted structural opportunities in the market despite a stable macroeconomic backdrop. Furthermore, positive developments in U.S.-China trade discussions bolstered investor confidence.
(With inputs from agencies.)
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