Apple Suppliers and Chip Stocks Propel Chinese Markets Amid US-China Optimism

Chinese stocks experienced a modest rise on Monday, buoyed by gains in Apple suppliers and chip shares, following positive signals from US-China dialogues. The Shanghai Composite index closed higher by 0.2%, while the CSI300 rose 0.5%. The electronics and info tech sectors showed significant gains, offset by a weakened banking sector.

On Monday, Chinese stocks saw slight gains as investors reacted positively to encouraging signals from US-China talks. Apple suppliers and chip stocks led the rally, with the Shanghai Composite index inching up 0.2% to close at 3,828.58.

U.S. President Donald Trump announced progress with Chinese President Xi Jinping on a TikTok deal, and both leaders plan to meet in six weeks in South Korea to discuss trade and other global issues. Goldman Sachs noted that US-China relations might stabilize or improve in coming months.

The electronics sector surged by 4.3%, driven by OpenAI's deal with Luxshare, which hit its trading limit, while banking and insurance sectors saw declines. Analysts remain optimistic about market potential with geopolitical risks diminishing.

(With inputs from agencies.)