Chinese Shares Struggle Amid Geopolitical Tensions

Chinese shares faced a challenging trading day as they ended flat after hitting six-week lows, affected by geopolitical tensions. Market fluctuations were evident, with defense stocks rallying while the tech sector saw some recovery, amid expectations of economic instability until December's Central Economic Work Conference.

On Monday, Chinese shares ended flat after encountering six-week lows, as geopolitical tensions continued to unsettle investors. The Shanghai Composite index managed a slight rise of 0.05% to 3,836.77, having dipped earlier during the trading session.

The blue-chip CSI300 index fell by 0.1%, while a rally in defense stocks saw the CSI Defence Index climb 3.5%. This occurred following China's foreign minister's comments on Japan, which added strain to their bilateral relations.

Tech stocks, including Nvidia's AI and semiconductor stocks, rebounded slightly. However, declines in the banking and energy sectors weighed on the market. Analysts anticipate market fluctuations preceding December's Central Economic Work Conference, amid ongoing geopolitical dynamics.

(With inputs from agencies.)