The Shanghai Composite rose 0.15% to around 3,875, while the Shenzhen Component gained 0.8% to 12,880 on Wednesday, marking a third straight session of gains as mainland stocks mirrored global markets amid growing bets on a US Federal Reserve rate cut next month. Expectations for a cut strengthened after the latest US data pointed to softening consumer spending, while reports suggested a dovish candidate is being considered for the next Fed chair. Technology stocks led the advance in China, with Eoptolink Technology up 6%, Zhongji Innolight 8%, Foxconn Industrial 2%, and both Zhejiang Sanhua and Luxshare Precision 1.8%. In corporate news, Alibaba reported stronger-than-expected 34% growth in its cloud business, which offset a sharp profit decline as the company ramped up spending on consumer subsidies and data centers to capitalize on the AI boom.
