FX.co ★ Chinese Stocks Rises for Second Session

The Shanghai Composite Index advanced by 0.4% to surpass the 3,530 mark, while the Shenzhen Component Index saw a 0.4% increase, reaching 10,920, in trading on Friday. This rise continues a trend of gains for mainland Chinese stocks, achieving fresh multi-month highs fueled by strong optimism surrounding artificial intelligence developments. Both indices are poised to record their fourth consecutive week of gains. Contributing to this positive market sentiment, U.S. President Trump adopted a less confrontational tone towards China, raising the possibilities of a future trade agreement. The mood was further elevated by robust U.S. economic indicators—such as a resurgence in retail sales, unexpectedly favorable unemployment claims, and strong corporate earnings reports. Notably, AI-focused stocks were at the forefront, climbing by 1.3% to a four-month peak, especially influenced by Nvidia's recommencement of H20 chip shipments and positive news from Taiwan’s TSMC, which upgraded its fiscal expectations due to surging demand for AI chips. Among the top performers were Contemporary Amperex Technology (up 1.6%), Zhongji (gaining 5.9%), and Eoptolink (rising 3%). Market participants are now closely monitoring the People's Bank of China's forthcoming decision on the loan prime rate, with predictions forecasting no changes.