Geopolitical Calm Sparks Surge in Chinese Stocks
Despite a slight dip on Friday, Chinese stocks posted their best weekly gain in nearly two months, spurred by a ceasefire between Israel and Iran that lifted investor sentiment. Key sectors such as financial and brokerage stocks saw notable increases, reflecting improved market fundamentals and investor demand.
Shanghai experienced a decline in its stock market on Friday, yet overall registered its strongest weekly performance in nearly two months. This rise in stock prices was fueled by uplifted investor sentiment following a ceasefire agreement between Israel and Iran, which particularly benefited financial shares.
Analysts at Morgan Stanley noted a rise in Chinese brokerage stocks, attributing this to reduced geopolitical tensions and an increased appetite for investment risk. The CSI 300 Index ended the week up 2.0%, the most substantial gain since early May, with the Hang Seng Index marking its best performance since March.
In a separate development, the US and China have agreed on measures to fast-track rare earth shipments amid efforts to resolve ongoing trade disputes. Additionally, tech company Xiaomi saw its shares reach record highs following the successful launch of a new electric car model.
(With inputs from agencies.)
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