AI and Gold Stocks Boost China and Hong Kong Markets Amid U.S.-Iran Talks

China and Hong Kong stock markets saw gains, led by AI and gold-related shares. The rally was fueled by optimism over potential U.S.-Iran talks resuming. China's exports slowed due to higher energy costs, but AI shares rose 2.2%. Strategist Meng Lei anticipates ETFs and private funds will boost new capital.

China and Hong Kong stock markets ended higher on Tuesday, driven by gains in artificial intelligence and gold-related shares. Investor sentiment was buoyed by hopes of renewed negotiations between the U.S. and Iran, even as China's March export data showed signs of weakness.

The CSI300 Index rose by 1.2%, with the Shanghai Composite Index up by 1% and the Hang Seng climbing by 0.8%. Talks between the U.S. and Iran may resume in Islamabad, potentially influencing market directions. Despite geopolitical tensions and energy price hikes, AI shares saw a 2.2% increase, while tech stocks in Hong Kong climbed by 0.6%.

UBS China equity strategist Meng Lei forecasts inflows from ETFs, leveraged funds, and private funds as future capital sources for onshore markets. He recommends a balanced investment strategy, with a preference for growth and cyclical stocks once market conditions stabilize. Shares of Pop Mart soared after investor Duan Yongping expressed interest.