The Shangai Composite Index Closes 0.27% Lower

The Shanghai Composite edged down 0.2% to 4,053 on Tuesday, extending losses from the previous session and falling to its lowest level in more than a month, while the Shenzhen Component declined 0.6% for a third consecutive session to 15,263, also a one-month low, as investors remained cautious amid stalled diplomatic efforts to secure a US-Iran peace agreement. Conflicting accounts from US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu regarding recent discussions on the conflict in Lebanon underscored the uncertainty surrounding negotiations, adding to concerns about the broader geopolitical outlook as the conflict entered its fourth month. Losses were led by Semiconductor Manufacturing International Corp. (-1.5%), Luxshare Precision Industry (-1.3%), Victory Giant Technology (-1.5%), and Weichai Power (-8.9%). Meanwhile, AI optimism continued to support select technology stocks, with Zhongji Innolight (1.4%) and Eoptolink Technology (4.1%) posting gains.

The Shangai Composite Index dropped 11 points or 0.27 percent on Monday to close at 4058 points. Losses were led by Sanan Optoelectron (-2.94%), Datang Intl (-2.78%) and China Eastern Airlin (-2.51%). Offsetting the fall, top gainers were Yonyou Soft (10.03%), Huaneng (9.36%) and China Coal (7.53%).

The Shanghai Composite fell 0.27% to close at 4,058 on Monday, hitting its lowest level in more than a month, while the Shenzhen Component dropped 1.51% to 15,340, as investors assessed mixed PMI readings against the backdrop of the ongoing Middle East conflict, while sharp losses in heavyweight technology stocks further added to downward pressure. Official data showed that the Composite PMI rose to 50.5 in May from 50.1 in April, supported by a slight rebound in the non-manufacturing sector (50.1 vs. 49.4), while the manufacturing PMI (50.0 vs. 50.3) edged lower. A private survey also showed the Manufacturing PMI slipped to 51.8 from April's five-year high of 52.2. Meanwhile, technology stocks also weighed on both benchmarks amid profit-taking, with notable decliners including Cambricon Technologies (-1.47%), SMIC (-3.19%), Zhongji Innolight (-2.21%), Eoptolink Technology (-4.18%), and NAURA Technology (-3.89%).