China shares edge up on US-Iran peace deal hopes, Nvidia-fuelled chip rally

China stocks edged higher on Thursday, joining ​a broader rally in the region, ​as hopes of a U.S.-Iran peace ‌deal ​lifted risk appetite, while Nvidia's stellar earnings boosted chip shares. ** Meanwhile, tech optimism boosted by Nvidia's blockbuster growth could continue driving out-performance ⁠in small- and mid-cap indexes, they said. ** The semiconductor sector surged before pulling back.

China stocks edged higher on Thursday, joining ​a broader rally in the region, ​as hopes of a U.S.-Iran peace ‌deal ​lifted risk appetite, while Nvidia's stellar earnings boosted chip shares. ** China's blue-chip CSI300 index was up 0.6% by the lunch break, ‌while the Shanghai Composite index was flat at 4,162.37 points.

** In Hong Kong, the benchmark Hang Seng Index was largely flat at 25,648.28. ** U.S. President Donald Trump said on Wednesday that negotiations with ‌Iran were in the final stage, suggesting he was prepared to wait a few days ‌to "get the right answers" from Tehran, but also warned of renewed attacks if it did not agree to a deal.

** "The easing of the U.S.-Iran conflict and the drop in oil prices may boost market sentiment and drive ⁠a rebound ​in equity indices," analysts at ⁠Nanhua Futures said in a note. ** Meanwhile, tech optimism boosted by Nvidia's blockbuster growth could continue driving out-performance ⁠in small- and mid-cap indexes, they said.

** The semiconductor sector surged before pulling back. The CSI All-Share Semiconductor ​Products and Equipment Index rose as much as 3.2% to a record before turning lower ⁠0.4% by midday break. ** Chip maker Naura Technology hit the daily 10% limit-up and notched a record high before ⁠closing ​the morning session up 6.1%.

** "Against a backdrop of ample liquidity and broadly improving earnings, our strategy is to focus on high-quality growth and selective stock-picking," said Xiaoning Zhang, China equity strategist ⁠at J.P. Morgan. ** "From a broad market perspective, we remain positive and optimistic," she said, forecasting a ⁠year-end target of ⁠5,200 for the CSI 300 Index in the base case.

** Around the region, MSCI's Asia ex-Japan stock index was firmer by 2.86%, while Japan's ‌Nikkei index was ‌up 3.72%.