Chinese Stocks Rises for Second Session

The Shanghai Composite rose 0.4% to above 3,530, while the Shenzhen Component added 0.4% to 10,920 on Friday, as mainland stocks extended gains to hit fresh multi-month highs, supported by ongoing AI-driven optimism. Both indexes are also on track to post their fourth consecutive weekly gain. US President Trump softened his rhetoric toward China, boosting hopes for a potential trade deal. Sentiment was also lifted by strong US economic data, including a rebound in retail sales and better-than-expected jobless claims, as well as upbeat corporate earnings. AI-related stocks led the charge, up 1.3% to a four-month high, buoyed by Nvidia’s H20 chip shipment resumption and optimism spreading from Taiwan after TSMC raised its full-year outlook on booming AI chip demand. Top gainers include Contemporary Amper (1.6%), Zhongji (5.9%), and Eoptolink (3%). Attention now turns to PBOC’s latest loan prime rate decision later this week, with expectations for no change.