The Shanghai Composite rose 0.6% to around 3,900, while the Shenzhen Component climbed 0.8% to 13,155 on Friday, marking a third consecutive session of gains for mainland markets as gains in defense and aerospace stocks supported the market. Those moves came as a proposed $11 billion US arms sale to Taiwan drew an angry response from China, bolstering bets that Beijing will beef up its military capabilities. Top gainers in the sector included Fujian Snowman (up 8.9%), China Spacesat (5.1%), China Aerospace (1.3%), Addsino Co (1.7%) and Aerospace Intelligent Manufacturing (14.8%). Technology and AI-linked stocks also advanced, with Eoptolink Technology up 4% and Zhongji Innolight gaining 1.6%. Additionally, Chinese equities tracked Wall Street’s overnight gains, supported by cooler-than-expected US inflation data that fueled expectations for further Federal Reserve rate cuts.
