FX.co ★ Shanghai Stocks Near 10-Year High on Trade Optimism

The Shanghai Composite index experienced a 0.5% increase on Thursday, reaching levels above 3,700, nearly achieving its highest point since August 2015. This positive movement was largely attributed to encouraging developments in US-China trade negotiations, which bolstered market sentiment. Investors anticipate further policy interventions by Beijing to stimulate growth and mitigate the repercussions of escalated US tariffs. Concurrently, the prospect of more significant interest rate cuts by the US Federal Reserve this year has heightened global risk-taking. The focus now shifts to the forthcoming meetings between US and Chinese trade representatives over the next few months, which will be pivotal in shaping the economic relationship between the two nations. Technology stocks spearheaded the market rally, with substantial gains observed in companies such as Cambricon Technologies (up 7.9%), Hygon Information (up 11.5%), China Greatwall (up 3.9%), Dawning Information (up 8.5%), and Beijing Teamsun (up 10%).