The Shangai Composite Index Closes 1.77% Higher

The Shanghai Composite rose 0.9% to above 3,900, while the Shenzhen Component jumped 1.9% to 13,800, extending gains from the previous session as hopes for a resolution to the Middle East conflict lifted sentiment. Reports indicated the US was pursuing talks with Iran, including a proposed one-month ceasefire to support negotiations and a 15-point plan to resolve the conflict. However, uncertainty lingered as President Trump ordered the deployment of about 2,000 troops to the region. In China, sentiment was supported by reports that authorities signaled plans to soften previously proposed fuel price increases. PBoC Governor Pan Gongsheng also reaffirmed a commitment to maintaining supportive policies to underpin stable growth and ensure financial market stability. Technology stocks led the advance, with notable gains from Zhongji Innolight (4%), SMIC (1.1%), Eoptolink Technology (2.1%) and NAURA Technology (4.2%). Conversely, financials and energy stocks lagged as oil prices fell.

The Shangai Composite Index gained 68 points or 1.77 percent on Tuesday to close at 3881 points. Gains were led by Zijin Mining (5.33%), Jiangsu Lianyungang (4.93%) and Datang Intl (4.47%).

The Shanghai Composite Index rose 1.78% to close at 3,881 on Tuesday, pausing a three-day losing streak, as a sharp pullback in global oil prices and delayed military escalation in the Middle East lifted investor sentiment. The rebound followed a temporary postponement of US action against Iran, easing fears of a severe energy supply shock and helping cool inflation concerns. Lower bond yields also reduced expectations for aggressive interest rate hikes, providing further support to equities. Gains were aided by a broader regional recovery, though uncertainty surrounding the Strait of Hormuz and ongoing geopolitical risks capped upside. Leading gains in various sectors included Eoptolink Technology (+1.64%), Zhongji Innolight (+0.60%), Zijin Mining (+5.30%), Biwin Storage Technology (+4.51%), and Cambricon Technologies (+5.89).