Shanghai stock benchmark dips after nine-day rally

HONG KONG: China stocks edged lower on Tuesday, with the Shanghai benchmark poised to snap a nine-day winning streak as investors took profits following its best run in more than a year.

• At the midday break, the Shanghai Composite index was down 0.1% at 3,961.21 and set to break its best winning run since September 2024.
• The blue-chip CSI300 index was largely flat after fluctuating between gains and losses in the morning session.
• The defence sector climbed 0.4% to fresh high in nearly three years, extending its recent gains, as China launched a live-firing drill around Taiwan simulating blockade.
• The gold industry index recouped the 3% loss at open and edged up 0.3%, as precious metals steadied after a sharp selloff in the previous session.
• The artificial intelligence sector index rose 0.6% and the semiconductor index added 0.5%. Among major laggards, the real estate index was down 1.6%, the healthcare sub-index lost 0.7% and the insurer sector weakened around 1%.
• “The market is consolidating with increasing volume as a bullish trend emerges,” analysts at Pacific Securities said in a note.
• “Sectors are showing rotational strength in an overall upward trend, and we expect this rally to start with broad gains and accelerate given extremely low option volatility levels.”
• In Hong Kong, the Hang Seng Index was up 0.5% at 25,751.64, and the tech index rose 1.1% to a two-week high.
• The Hang Seng China Enterprises Index rose 0.7%.
• Six Chinese companies made their Hong Kong trading debuts with most opening above their IPO prices, rounding off a resurgent year for listings as the city dominated Asian equity capital markets.
• Around the region, MSCI’s Asia ex-Japan stock index was firmer by 0.1%, while Japan’s Nikkei index was down 0.1%.