China Stocks Climb in Asian Upswing

The Shanghai Composite climbed 1.1% to 4,076 on Monday, while the Shenzhen Component gained 1.8% to 15,226, tracking gains across Asian peers as market sentiment improved on optimism over a tentative US–Iran diplomatic thaw. The agreement is said to include the reopening of the Strait of Hormuz, an end to hostilities, and a framework for renewed negotiations over Iran’s nuclear program. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed the deal, with officials from both countries expected to meet in Switzerland on Friday to formally sign it. However, key details remain unresolved, and no official text has yet been released. Domestically, investors are awaiting a fresh batch of economic indicators, including industrial production, retail sales, and unemployment data. Notable movers included Zijin Mining Group (5%), CATL (1.8%), and Zhongji Innolight (2.3%). In contrast, energy stocks underperformed amid lower oil prices, particularly PetroChina (-1.1%) and CNOOC (-4%).

The Shanghai Composite Index rose 1.1% to close at 4,032 on Friday, while the Shenzhen Component gained 0.8% to 14,963, rebounding from the previous session and tracking gains across Asian markets as renewed hopes for a Middle East peace deal lifted global sentiment. Still, volatility driven by US–Iran tensions earlier in the week left the benchmarks mixed, with the Shanghai Composite ending the week up about 0.1%, its first weekly gain in a month, while the Shenzhen Component fell 2.3%, marking its third consecutive weekly decline. Sentiment was later supported after President Trump said that a deal with Iran could be reached as soon as this weekend, potentially reopening the Strait of Hormuz. A-share commercial space-related stocks surged on momentum tied to SpaceX’s upcoming listing, with AVIC Chengdu Aircraft (+11%) and Chengdu Spaceon Electronics (+10%) among the top gainers. Markets now await China's May credit lending data, due later today, to gauge the health of the economy.

The Shangai Composite Index rose 45 points or 1.13 percent on Friday to close at 4032 points. Leading the gains are China Molybdenum (10.02%), Avic Shenyang Aircraft (6.99%) and Hengli Petrochemical (6.88%).