China stocks end week near 10-month high
The Shanghai Composite Index rose to 3,645 points in morning trades, its highest level since October 2024.
China stocks have steadily climbed this week, supported by upbeat trade and service activity data. For the week, the CSI300 Index gained 1.2%, while the Hang Seng Index rose 1.4%.
'The market may be underpricing the risk of near-term deterioration in the US-China relationship,' said Morgan Stanley strategists led by Laura Wang.
The strategists urged investors to monitor developments in trade tensions and flagged the upcoming NPC Standing Committee meeting and second-quarter earnings season as potential catalysts for market direction. In the interim, they prefer mainland-listed A-shares over Hong Kong-listed H-shares, citing stronger relative performance during periods of global market volatility.
US President Donald Trump said on Wednesday that he could announce further tariffs on China over its purchases of Russian oil, depending on the developments in the trade discussions.
China faces an August 12 deadline to reach a durable tariff agreement with Trump's administration.
Tech majors traded in Hong Kong were down 1.6%, while materials shares were up 2.5%. Shares of semiconductors dropped nearly 2%, weighed by an 8% fall in China's largest chipmaker SMIC after it reported weaker-than-expected second-quarter earnings.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
26 minutes ago
- Business Recorder
Stocks surge, KSE-100 gains over 600 points in early trade
The ongoing bullish momentum at the Pakistan Stock Exchange (PSX) was not stopping, with the benchmark KSE-100 gaining over 600 points during the opening minutes of trading on Wednesday. At 9:40am, the benchmark index was hovering at 147,630.54, an increase of 625.22 points or 0.43%. Buying interest was observed in key sectors including automobile assemblers, commercial banks, fertiliser, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks including ARL, OGDC, POL, SNGPL, HBL, MCB, MEBL and NBP traded in the green. Analysts say strong corporate earnings and anticipation of investments from the United States in key sectors, including energy, are driving the positive sentiment at the bourse. On Tuesday, the PSX navigated a turbulent session, closing at a record high despite heavy profit-taking by investors keen to lock in recent gains. The benchmark KSE-100 Index ended just 75.48 points, or 0.05% up, at 147,005.32 points. Globally, stocks in Asia climbed and the US dollar was subdued on Wednesday, as data showed both resilience in major economies and the need for central banks to remain accommodative. Wall Street scaled new heights on Tuesday, driven by increasing certainty that the Federal Reserve will cut interest rates next month. Japan's Nikkei broke through the 43,000 level for the first time, and cryptocurrency ether rose to an almost four-year high. The highly anticipated US inflation readings indicated President Donald Trump's tariff regime had yet to filter down to consumer prices. In Japan, a report showed manufacturers grew more confident about business conditions after a trade agreement with the United States. The MSCI All Country World Index of shares climbed for a second day to reach 948.54, a new all-time high. Japan's Nikkei stock index rose 1.4%, also setting a new peak for a second-straight session. This is an intra-day update
Express Tribune
an hour ago
- Express Tribune
Bourse enters consolidation phase
Listen to article The Pakistan Stock Exchange (PSX) closed marginally higher on Tuesday as it entered a consolidation phase, with the KSE-100 index gaining 75 points to close at a record high at 147,005. Analysts noted that investors adopted a cautious stance amid mixed sentiment, selective buying and profit-taking. Trading volumes registered an uptick, supported by gains in banking stocks, while weakness in fertiliser and energy sectors capped the advance. The market also got support from the ongoing Pakistan-US trade and investment discussions, a stable rupee and corporate earnings. According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher on a strong earnings outlook and rupee stability. Speculation about Pakistan-US trade and investment deals and the government seeking further export incentives, and a rise in business confidence drove the PSX to a record high, he added. At the end of trading, the benchmark KSE-100 index recorded an increase of 75.48 points, or 0.05%, and settled at 147,005.32. In its review, Topline Securities commented that the KSE-100 index wrapped up the trading session at 147,005, marking a modest gain of 75 points. The market saw intra-day volatility as the index surged to the high of 147,977 before retreating to the low of 146,895, reflecting investor-driven profit-taking strategies, it said. Positive momentum in Bank Alfalah, HBL and Systems Limited provided a combined lift of 295 points, offering partial reprieve against the broader market weakness. In contrast, significant downward pressure stemmed from Fauji Fertiliser, Mari Petroleum, Oil and Gas Development Company (OGDC), Pakistan State Oil and Bank AL Habib, which shaved 527 points off the index, added Topline. In its commentary, Arif Habib Limited (AHL) noted that Tuesday marked a flat session, following Monday's surge, with the KSE-100 managing to close above 147,000. Some 47 shares rose while 53 fell, with Bank Alfalah (+5.28%), HBL (+2.04%) and Systems Limited (+1.73%) contributing the most to index gains. On the flip side, Fauji Fertiliser (-1.11%), Mari Petroleum (-2.51%) and OGDC (-2%) were the biggest drags, it said. AHL observed that Pakistan and US officials were in talks to finalise finer details of their trade deal, which included investment commitments from Washington. Finance Minister Muhammad Aurangzeb hinted at major US investment in different sectors. Additionally, Barrick Mining was seeking to raise $3.5 billion from international lenders, including US-backed institutions, to fund the Reko Diq copper and gold mining project. "Near-term index support remains at 146,000 points," added AHL. JS Global analyst Muhammad Hasan Ather said that the KSE-100 index closed flattish, inching up just 75 points. Gains were fuelled by strong corporate earnings, robust remittances and optimism about US-Pakistan investment ties following a new trade pact, he said. Institutional buying and improving macro indicators including a stable rupee and progress on circular debt resolution lifted sentiment. While short-term corrections are possible, the outlook remains bullish as foreign inflows, fiscal reforms and export prospects gain traction amid easing geopolitical tensions, he added. Overall trading volumes increased to 691.7 million shares compared with Monday's tally of 611.2 million. Traded value increased to Rs44.6 billion compared to Rs44 billion in the previous session. Shares of 482 companies were traded. Of these, 208 stocks closed higher, 242 dropped and 32 remained unchanged. Yousuf Weaving Mills was the volume leader with trading in 46.3 million shares, gaining Rs1 to close at Rs6.09. It was followed by Kohinoor Spinning Mills with 39.9 million shares, gaining Rs0.24 to close at Rs6.47 and Invest Bank with 34.4 million shares, gaining Rs1 to close at Rs9.68. Foreign investors bought shares worth Rs132.7 million, the National Clearing Company reported.
Express Tribune
an hour ago
- Express Tribune
OPEC lifts 2026 oil demand view
The Organisation of the Petroleum Exporting Countries (OPEC) on Tuesday raised its global oil demand forecast for next year and trimmed its estimate for growth in supply from the United States and other producers outside the wider OPEC+ group, pointing to a tighter market. The outlook for higher demand and a drop in supply growth from outside OPEC+ would make it easier for OPEC+ to proceed with its plan to pump more barrels to regain market share after years of cuts aimed at supporting the market. World oil demand will rise by 1.38 million barrels per day in 2026, the OPEC said in a monthly report, up 100,000 bpd from the previous forecast. This year's expectation was left unchanged. The forecasts are at the higher end of the industry range, as the agency expects a slower energy transition than some other forecasters such as the IEA, which expects world demand to rise by just 700,000 bpd this year. In the report, OPEC also increased its forecast for world economic growth slightly this year to 3.0% as US President Donald Trump's administration signs some trade deals and the economies of India, China and Brazil outperform expectations. "Economic data at the start of the second half of 2025 further confirm the resilience of global growth, despite persistent uncertainties related to US-centred trade tensions and broader geopolitical risks," OPEC said. Brent crude was steady after OPEC published the report, trading close to $66 a barrel. It reached a four-year low near $58 in April. The drop in oil prices this year, partly due to OPEC+ output hikes and concern about US tariffs, has put pressure on the economics of US shale output, analysts say. OPEC+ sources have told Reuters that the group's policy shift to raise output after years of supporting the market with cuts was driven partly to take on US shale production. OPEC's report on Tuesday said US output of tight oil, another term for shale, will decline by 100,000 bpd in 2026 versus last month's outlook for flat output year-on-year.
