Stocks in China Hit 10-year High

The Shangai Composite Index fell -50 points or 1.24 percent on Friday to close at 3957 points. Leading the losses are China United Network (-5.24%), Shanghai Petrochemical (-4.17%) and Avic Shenyang Aircraft (-3.90%).

The Shanghai Composite dropped 1.24% to close at 3,957 on Friday, while the Shenzhen Component lost 0.25% to 13,866, with both benchmarks posting sharp weekly declines as concerns over the economic and inflationary impact of the Iran war and higher energy prices weighed on sentiment. A retreat in oil prices offered some relief after US President Donald Trump ruled out deploying ground troops against Iran, and Israeli Prime Minister Benjamin Netanyahu said Israel would refrain from further strikes on Iranian energy infrastructure. China is also better positioned than other Asian economies to weather the oil shock after years of building up reserves and diversifying its energy mix toward renewables. Notable losses were recorded in Huagong Tech (-3.3%), Zijin Mining (-2.1%) and East Money Information (-5.3%). In contrast, the photovoltaic sector found support following reports that Tesla is seeking to buy solar equipment from Chinese companies.

The Shangai Composite Index fell -56 points or 1.37 percent on Thursday to close at 4007 points. Leading the losses are China Molybdenum (-8.55%), Zijin Mining (-7.93%) and Aluminum Corporation of China (-6.88%).