China Stocks Stumble Amid Easing U.S. Trade Tensions
China's stock market suffered a setback following three days of gains due to mixed investor reactions to recent economic data. The decline occurred despite easing trade tensions with the U.S. Notable movements included a drop in artificial intelligence and defense shares, while maritime port stocks surged.
- Country:
- China
China's stock market saw a downturn after a brief winning streak as investors interpreted economic indicators and sought direction amid a backdrop of easing trade tensions with the United States. Hong Kong's market also reflected the dip.
The CSI300 Index, a key blue-chip gauge, fell by 0.6% by midday, with the Shanghai Composite Index sliding 0.4%. The Hang Seng Index in Hong Kong experienced a 0.3% decline. The drop was influenced by a larger-than-expected decrease in new bank loans in April, a month traditionally known for slowed loan demand.
Despite regained losses from earlier U.S. tariffs, Chinese stocks in artificial intelligence and defense sectors fell. In contrast, maritime shipping and port stocks surged as trade tensions de-escalated. Tencent shares noted a slight dip, while investors awaited Alibaba's earnings report. Meanwhile, China made a move to cut reserve requirements by 50 basis points.
(With inputs from agencies.)
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