The blue-chip CSI300 index added 0.3% at midday trading break to near its strongest level since January 16.
The Shanghai Composite index also rose as much as 0.3% to the highest level since March 17, before narrowing the gains to 0.2% at 4,095.07 points at midday trading break.
Tech sectors led gains onshore, with the AI industry index and chip sector index both gaining 1.5%. The CSI 5G Communications Index was up 3%.
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 1.3% at 26,137.01. The Hang Seng Tech Index was down 2.2% to a one-week low.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.6%, while Japan’s Nikkei index was up 0.21%.
Comments
Comments are closed for this article.