FX.co ★ China Stocks Gain for Second Session

The Shanghai Composite Index edged up by 0.3% to surpass 3,920, while the Shenzhen Component registered a minor rise of 0.1% to reach 13,130 on Thursday. This upward trend marked the second consecutive session of gains, fueled by expectations that the Chinese government would unveil new stimulus measures to counteract deflationary trends and mitigate the repercussions of increased tariffs from the United States. Premier Li Qiang called for enhanced policy actions to boost consumer spending and address unfair market practices. Despite these positive indicators, market sentiment was restrained by ongoing US-China trade tensions, further exacerbated by President Donald Trump's acknowledgment of the persistent trade conflict between the two countries. Nevertheless, US Treasury Secretary Bessent indicated the possibility of extending the current trade truce beyond the initial three months, contingent upon China halting plans for stringent new export controls on rare earth minerals. The technology sector led the market gains, with significant advancements seen in shares of ZTE Corp, rising by 6%, Zhongji Innolight, up by 4.7%, and Cambricon Technologies, increasing by 3.5%.