FX.co ★ China Stocks Track Global Peers Higher

The Shanghai Composite index saw a modest increase of 0.15%, reaching approximately 3,875, while the Shenzhen Component advanced by 0.8% to 12,880 on Wednesday. This marks the third consecutive session of gains for mainland stocks as they align with global market trends, underpinned by rising speculation of an interest rate cut by the US Federal Reserve next month. These expectations have heightened following recent US data indicating a decline in consumer spending and reports suggesting that a dovish candidate may be considered for the role of Fed chair. In China, technology stocks led the rally, with notable performances from Eoptolink Technology, up 6%, Zhongji Innolight, rising 8%, Foxconn Industrial, climbing 2%, and both Zhejiang Sanhua and Luxshare Precision gaining 1.8%. In the realm of corporate developments, Alibaba announced a robust 34% growth in its cloud business, which mitigated the impact of a steep decline in profits attributed to increased expenditure on consumer subsidies and data centers, aimed at leveraging the potential of the AI explosion.