Shanghai Stocks Rise as Yuan Strengthens Amid Government Optimism

Shanghai's stock market extended its longest winning streak in over a year, thanks to a stronger yuan and government commitments to stimulate domestic consumption. While the Shanghai Composite index saw modest gains, the blue-chip CSI300 index fell, reflecting challenges from weak domestic demand. Analysts remain optimistic amid favorable policy signals.

In a remarkable display of resilience, Shanghai's stock market continued its upward trajectory on Monday, notching its longest winning streak in more than a year. The boost was driven by a robust yuan and renewed pledges from the government to revitalize domestic consumption.

The Shanghai Composite index managed a slight 0.04% rise, closing at 3,965.28, marking its ninth consecutive session of gains. This streak is the longest since September 2024's ten-day climb. However, the blue-chip CSI300 index wasn't as fortunate, reversing earlier gains to end the day 0.4% lower, breaking a consecutive six-day growth period.

The upbeat market sentiment comes as China's finance ministry promises a more assertive fiscal strategy poised to enhance domestic consumption and technological advancement. Meanwhile, sectors like defense and energy showed robust performance, while the new energy vehicle sector faced headwinds.

(With inputs from agencies.)