China Stocks Soar Amid AI and Semiconductor Gains

China stocks soared to their highest levels in over a decade on Thursday, with substantial boosts from semiconductor, gold, and AI-related shares. This surge came as investors returned from the Golden Week holiday, causing the blue-chip CSI300 Index to rise 1.7% and the Shanghai Composite Index to climb 1.2% to an impressive 3,931 points. Meanwhile, Hong Kong's Hang Seng Index remained relatively stable.

Chinese gold mining stocks followed a bullish trend, spurred by record-high bullion prices exceeding $4,000 per ounce. Additionally, onshore non-ferrous metal shares experienced a significant upswing of 7%. Enthusiasm for artificial intelligence reignited interest in the tech-focused STAR50 index, which gained over 5%, while China's semiconductor stocks rose amid renewed U.S. legislative calls for restrictions on chipmaking equipment sales to China.

Despite the positive market momentum, a reported 11.5% year-on-year rise in holiday travel failed to boost consumer staple and liquor shares, which fell nearly 1% and 2%, respectively. UBS analysts pointed to an underwhelming holiday spending report, highlighting selective growth pockets and underlying weaknesses, such as declining movie box office revenues and liquor shipments. Investors are closely monitoring the upcoming Communist Party leadership meeting on October 20-23 and a potential Xi-Trump meeting at the APEC summit.

(With inputs from agencies.)