China stocks hit 11-year high on AI optimism, exports rebound

Chinese stocks closed ​near an 11-year high on Monday, supercharged ​by a strong tech rally driven ‌by ​renewed AI optimism and export strength. ** At market close, the benchmark Shanghai Composite index was up 1.1% at 4,225.02, its highest ‌since June 30, 2015.

Chinese stocks closed ​near an 11-year high on Monday, supercharged ​by a strong tech rally driven ‌by ​renewed AI optimism and export strength.

** At market close, the benchmark Shanghai Composite index was up 1.1% at 4,225.02, its highest ‌since June 30, 2015. ** The blue-chip CSI 300 Index was up 1.7%, its highest in more than four years.

** In Hong Kong, the Hang Seng Index was largely flat to close at 26,406.84. ** Tech ‌shares powered the markets higher, buoyed by a broader regional rally as optimism about AI ‌grew.

** The CSI Semiconductor Index surged 6.3% to a record high. The CSI AI Index climbed 3.2% and the info tech sector index surged 4.4%, also touching all-time highs. ** The tech-focused Star Index was up 4.7%, while ChiNext Price ⁠Index ​added 3.5%.

** China's export ⁠growth rebounded strongly in April as factories raced to meet a wave of orders from AI-related industries and other buyers ⁠seeking to stockpile components amid the Iran conflicts. ** Meanwhile, the country's producer price index (PPI) surpassed expectations in April ​to hit a 45-month high, while consumer inflation also accelerated as global energy costs remained ⁠elevated, data released on Monday showed.

** "Growing global AI computing demand will continue lifting semiconductor-related exports going forward" with China's manufacturing ⁠cost ​advantage becoming more pronounced, analysts at CITIC Securities wrote in a note. ** Elsewhere, investors are also watching the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping, where ⁠Iran, Taiwan, and artificial intelligence are set to be discussed.

** Amid escalating tensions across the world, ⁠this summit could be ⁠a step where the two dominant powers manage their rivalry, maintain the uneasy calm, and avoid a total breakdown in relations through high-level personal ‌diplomacy, analysts at Nomura ‌said.