China stocks edged higher on Thursday, joining a broader rally in the region, as hopes of a U.S.-Iran peace deal lifted risk appetite, while Nvidia’s stellar earnings boosted chip shares.
The CSI300 index rose 0.6% by the midday break, while the Shanghai Composite Index Shanghai Composite Index held steady at 4,162.37 points. In Hong Kong, the Hang Seng Index Hang Seng Index was largely unchanged at 25,648.28. Across the region, MSCI’s Asia ex-Japan index climbed 2.86%, while Japan’s Nikkei Index surged 3.72%.
U.S.–Iran Diplomacy Eases Risk Sentiment
Market mood was boosted after U.S. President Donald Trump said negotiations with Iran were in their final stages, signaling possible progress toward a peace deal. He added he was willing to wait a few days for “the right answers,” while also warning of renewed action if talks failed.
Analysts noted that easing tensions and declining oil prices could further support equities. “The easing of the U.S.-Iran conflict and the drop in oil prices may boost market sentiment,” said analysts at Nanhua Futures, adding that conditions could support a rebound in equities.
Chip Rally Driven by Nvidia Optimism
Technology stocks also gained momentum after blockbuster earnings from Nvidia boosted global chip sentiment. China’s semiconductor sector initially surged before retreating, with the CSI All-Share Semiconductor Index rising as much as 3.2% to a record high before reversing to a 0.4% decline by midday.
Chipmaker Naura Technology Co Naura Technology hit its daily 10% limit-up and reached a record intraday high before ending morning trade up 6.1%.
Investors remain cautiously optimistic. “We remain positive and optimistic,” said J.P. Morgan strategist Xiaoning Zhang, citing liquidity and improving earnings, while projecting a year-end CSI300 target of 5,200 in a base-case scenario.
(With inputs from Reuters)
