Shanghai stocks edge up, helped by farming and energy shares

SHANGHAI: Shanghai shares edged up on Tuesday led by farming, energy and gold stocks but China’s blue-chip index was dragged lower by tech plays.

Hong Kong stocks fell amid rising Middle East tensions.

The Shanghai Composite Index ended the session up 0.2 percent. The blue-chip CSI 300 Index reversed early gains, dropping 0.4 percent.

Both indexes have stabilised recently after a mid-year selloff wiped off this year’s gains.

In Hong Kong, which is more vulnerable to global sentiment, the Hang Seng Index lost 0.4 percent.

An index tracking China’s agriculture-related shares jumped 4.3 percent after the central government unveiled a plan to bolster funding for rural revitalisation.

Energy shares also climbed as heightened tensions in the Middle East pushed up oil prices.

On Tuesday, Iran threatened the United States with “economic warfare” and said it had fired an advanced missile at the US

Traders are closely monitoring the upcoming US inflation data that could shape expectations for the Federal Reserve’s next policy move.

Meanwhile, China’s gold stocks rose as the yellow metal gained ground, while the US dollar slipped.

“The structural forces supporting gold prices remain firmly in place,” James Luke, portfolio manager at Schroders, said in a note, citing mounting US fiscal pressure.

Tech stocks in both China and Hong Kong fell following Monday’s rebound.

Computer, information security, new energy and chipmaking shares were among the biggest losers in China, with the sectors’ indexes falling more than 1 percent each.