Tech Surge Sparks China Stock Rebound Amid Easing Tensions

China's stock market, led by tech shares, saw an upswing as geopolitical tensions eased. The CSI300 and Shanghai Composite indices saw growth, boosted by AI and 5G stocks. President Trump emphasized strong relations with China, enhancing market sentiment. Investors remain optimistic about the tech sector's future.

China's stock market experienced a significant rebound from a two-month low on Tuesday, primarily driven by an upswing in technology shares. The market's positive sentiment was bolstered by signs of easing geopolitical tensions alongside a global market shrugging off concerns over the AI sector's potential overheating.

Strong performances were seen in China's major indices, with the blue-chip CSI300 Index rising 1.3% and the Shanghai Composite Index gaining 1.1%, while Hong Kong's Hang Seng Index added 0.6%. The market was further buoyed by U.S. President Trump's declaration of 'extremely strong' relations with China, following talks with President Xi Jinping.

Technology stocks, especially in the AI and 5G sectors, led the gains in the market, with significant rises in tech majors traded both domestically and in Hong Kong. While profit-taking was evident in recent weeks, analysts remain confident about the tech rally's potential for growth, supported by positive developments in the U.S. AI industry.

(With inputs from agencies.)