12-Jun-2026      17:28

China stocks edge higher on Middle East peace hopes

China's stock markets bounced back on Friday. The Shanghai Composite rose 1.1% to close at 4,032, while the Shenzhen Component gained 0.8% to 14,963. The rebound followed strength across Asian markets, helped by renewed optimism that a Middle East peace deal could be near.

Even so, the week was mixed. The Shanghai Composite managed a small 0.1% weekly gain ' its first in a month ' while the Shenzhen Component dropped 2.3%, marking its third straight weekly decline. Earlier volatility was driven by US'Iran tensions, but sentiment improved after President Trump suggested a deal with Iran could be reached soon, potentially reopening the Strait of Hormuz.

Space-related stocks were standout performers, boosted by excitement around SpaceX's upcoming listing. AVIC Chengdu Aircraft jumped 11% and Chengdu Spaceon Electronics climbed 10%. Investors now await China's May credit lending data, due later today, for clues on the health of the economy.

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News source: Capital Market - Live News