HONG KONG: China stocks edged up to a three-month high on Wednesday, led by artificial intelligence and chip sectors, as the extended Iran ceasefire offered some limited respite with peace talks still hanging in the balance.
The blue-chip CSI300 index added 0.7 percent at market close after hitting its strongest level since January 14.
The Shanghai Composite index closed 0.5 percent higher at 4,106.26, its third straight session of gains.
Tech sectors led gains onshore, with the AI industry index adding 3.3 percent and chip sector index gaining 2.9 percent. The CSI 5G Communications Index climbed 5.1 percent.
ChiNext Index, a Nasdaq-style second board for startups, added 1.7 percent to the highest level since 2015.
US President Donald Trump said he would indefinitely extend the ceasefire with Iran to allow for further peace talks. Although it was not clear on Wednesday whether Iran or Israel would agree, investors largely took heart from the development.
“Middle East geopolitical risks are gradually easing, and the market is becoming increasingly desensitised to geopolitical conflicts,” analysts at Nanhua Futures wrote in a note.
“Markets are now building an upward momentum, with earnings improvements likely becoming the core driver for the next phase.”
“The improvement in liquidity conditions and rising investor risk appetite are working in tandem, driving stock indices higher,” they added.
In Hong Kong, the Hang Seng Index was down 1.2 percent at 26,163.24. The Hang Seng Tech Index was down 1.9 percent to a one-week low.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.5 percent, while Japan’s Nikkei index was up 0.4 percent.
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