The Shanghai Composite rose 0.9% to above 3,900, while the Shenzhen Component jumped 1.9% to 13,800, extending gains from the previous session as hopes for a resolution to the Middle East conflict lifted sentiment. Reports indicated the US was pursuing talks with Iran, including a proposed one-month ceasefire to support negotiations and a 15-point plan to resolve the conflict. However, uncertainty lingered as President Trump ordered the deployment of about 2,000 troops to the region. In China, sentiment was supported by reports that authorities signaled plans to soften previously proposed fuel price increases. PBoC Governor Pan Gongsheng also reaffirmed a commitment to maintaining supportive policies to underpin stable growth and ensure financial market stability. Technology stocks led the advance, with notable gains from Zhongji Innolight (4%), SMIC (1.1%), Eoptolink Technology (2.1%) and NAURA Technology (4.2%). Conversely, financials and energy stocks lagged as oil prices fell.
