China Stocks Rise as Consumer Prices Boost Defensive Sectors

China's stock market saw gains on Monday, led by defensive sectors like liquor and consumer staples, amid rising consumer prices. The Shanghai Composite and CSI300 indices closed higher, while analysts warned of continued deflationary pressures. The U.S. government shutdown and its resolution also influenced market optimism.

China's stock markets closed significantly higher on Monday as defensive sectors, particularly liquor and consumer staples, saw substantial gains thanks to rising consumer prices.

The Shanghai Composite index increased by 0.5% to close at 4,018.6, while the CSI300 index gained 0.4%, suggesting renewed investor confidence.

Despite a noticeable rally in the consumer staple sector, analysts caution that deflation remains a concern, calling for further policy measures to stimulate demand.

(With inputs from agencies.)