China’s stocks inch higher as tech shares rise
The tech rally helped offset losses in banking and insurance shares following Beijing's capital-injection plan.
Chinese stocks saw a slight increase on Monday as technology shares rose, despite losses in banking and insurance sectors following Beijing's plan to inject capital into state-owned insurers and banks. The Shanghai Composite index rose 0.07% to 3,932.70 points, while the CSI300 blue-chip index climbed 0.6%. Tech sectors, particularly chip-related firms, jumped higher, with the ChiNext Composite index up 3.4% and the Shanghai tech-focused STAR50 index up 2.4%.
The chip sector saw a 3.4% rally, while the CSI 5G Communication Index rose over 6%, with Zhongji Innolight surging by its 10% daily limit. However, the insurance sector fell 2.6%, and the banking sector dropped 1.5%. Beijing plans to inject $54 billion in capital into financial institutions to bolster the system, and President Xi Jinping is expected to bring a large business delegation to Washington for talks, an uncommon move due to US skepticism.
Analysts at Nanhua Futures said markets will likely remain range-bound due to ongoing external uncertainties, and shifts in US interest rate expectations will be crucial for market direction. In Hong Kong, both the Hang Seng Index and the Hang Seng Tech Index declined by around 0.9%. Globally, Asian shares rose on Monday as a strong US jobs report boosted confidence in global growth, and oil prices ticked up after the US and Iran attacked ships in the Gulf.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
