Chinese shares edge higher as tech leads

HONG KONG: Chinese stocks edged higher on Wednesday as a rebound in technology shares offset caution over geopolitical tensions and key US inflation data.

At the midday break, the Shanghai Composite index was up 0.3% at 3,946.51 points.

China’s blue-chip CSI300 index was up 0.7%.

Tech sectors led gains, with the startup board ChiNext Composite index higher by 1.7% and Shanghai’s tech-focused STAR50 index up 2.1%.

The CSI Semiconductor Index added 2.5% and the CSI AI Index climbed 1.8%.

The CSI 5G Communications Index was up 3.4%, with heavyweight Zhongji Innolight up 4.4%.

“Technology sentiment is stabilizing as much of the recent bearishness appears priced in,” UBS analysts said in a note.

Around the region, shares edged higher on Wednesday as geopolitical tensions ratcheted up ahead of key US inflation data.

The US and Yemen’s Iran-aligned Houthis reported separate attacks on shipping on Tuesday as prospects for ending the Iran war appeared to dim, with Tehran saying the Strait of Hormuz would remain closed unless Washington accepts its conditions.

“Although uncertainties remain, including company-specific risks during the earnings season and occasional shifts in the geopolitical environment, negative factors weighing on the market have eased compared with July,” analysts at China Dragon Securities said in a note.

The policy backdrop has also become clearer, which should help stabilise the market and support a rebound, they added.

In Hong Kong, the benchmark Hang Seng Index was down 1.2% at 25,352.13, and the Hang Seng Tech Index was down 1.2%.

Chinese ADRs fell 2.9% overnight.‑Reuters