FX.co ★ China Stocks Edge Higher in Cautious Trade

As trading resumed on Thursday, the Shanghai Composite Index edged up by 0.1% to surpass the 3,370 mark, while the Shenzhen Component climbed 0.35% to reach 10,680. This movement allowed the indices to recover some losses from previous sessions. However, prevailing investor sentiment remained wary amid concerns over impending US tariffs. US President Donald Trump has announced the introduction of a 25% tariff on imported automobiles, slated to be enforced from April 2. Furthermore, reciprocal tariffs will target countries that apply levies on American goods—positions the President pledges to uphold during his second term. In the backdrop of these developments, China's first two months of industrial profits saw a decline of 0.3%, shedding light on ongoing deflationary trends and intensifying trade frictions with the US. Despite these challenges, several stocks demonstrated significant performances, notably Zhejiang Sanhua with a gain of 3.8%, Seres Group with 2.8%, BYD Company advancing by 1.8%, China Merchants Bank with a similar 1.8% increase, and Qinchuan Machine, which surged by 6.6%.