FX.co ★ China Stocks Rise as Risk Appetite Returns

The Shanghai Composite index advanced by 0.5% to surpass the 4,030 mark, while the Shenzhen Component rose by 0.8% to reach 13,935 on Tuesday. This recovery followed a dip in the previous session, as reduced volatility in the metals markets helped stabilize investor sentiment and prompted strategic buying of undervalued stocks. Echoing the gains in Wall Street, spurred by an unexpected rise in US factory activity, regional stocks climbed, reflecting optimism for the global economy and corporate earnings. Mining stocks, in particular, drove the market recovery, with notable rebounds in gold, silver, and other metal prices. Noteworthy performers included Zijin Mining, which increased by 2.2%, CMOC Group, which rose by 1.7%, and Hunan Gold Corp, which climbed by 4.8%. In addition, technology and AI-related stocks rebounded from Monday's decline, with companies such as Suzhou TFC Optical (up 6.9%), Shenzhen Sunway (up 7.9%), and Montage Technology (up 1.5%) leading the charge. Furthermore, data released on Monday indicated an acceleration in Chinese manufacturing activity for January, as businesses heightened production and expedited shipments in anticipation of the extended Lunar New Year holiday.