FX.co ★ China Stocks Climb on Tech Boost

On Thursday, the Shanghai Composite index increased by 0.6%, surpassing the 3,880 mark, while the Shenzhen Component saw a rise of 1.2%, reaching 13,060. This upward movement in the mainland stock markets was driven by a notable resurgence in technology stocks, pushing indices to their highest levels in a week. The improved sentiment followed Alibaba's announcement of better-than-expected revenue figures, alongside its commitment to significant investments in AI infrastructure. Additionally, Chinese stocks mirrored strong performances on Wall Street, as the market anticipated a more substantial rate-cutting trajectory from the US Federal Reserve. The surge was primarily led by tech and AI-related companies, with substantial gains recorded by Zhongji Innolight (2.1%), Eoptolink Technology (7.9%), Foxconn Industrial (7.1%), Sai MicroElectronics (20%), and Cambricon Technologies (4.5%). Market participants are also eagerly awaiting the upcoming Central Economic Work Conference in China, scheduled for December, for insights into new policy directions for the upcoming year.