China Markets Cool Down Before Crucial Politburo Meeting
China's stock markets took a breather from their rally as investors secured profits before an important Politburo meeting. Despite a 0.3% slip in the Shanghai Composite, the index recorded its fifth consecutive week of growth. Liquor distillers and consumer staples fell, while AI and semiconductors climbed.
The rally cooling in China's stock markets was evident as investors seized profits ahead of an influential Politburo meeting anticipated to chart the year's economic policy. Although the Shanghai Composite dipped by 0.3% to end at 3,593.66, it still marked a fifth consecutive weekly rise.
Declines led by a 2% drop in liquor distillers and a 1.7% fall in consumer staples contrasted sharply with gains in the AI and semiconductor sectors, which rose by 2.2% and 1.9% respectively. Analysts indicate the overall increase in risk appetite, despite doubts about a sustainable bull run.
Crucial policy decisions and trade relations developments between the U.S. and China continue to drive market sentiments. The upcoming Politburo meeting, expected to address economic policy, carries significant weight as Chinese policymakers cautiously navigate growth challenges.
(With inputs from agencies.)
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