FX.co ★ China Stocks Rise Over 1% to Kick Off April

The Shanghai Composite Index rose 1.3% to 3,944 on Wednesday, while the Shenzhen Component advanced 1.2% to 13,639, following broad gains across Asian markets amid growing optimism over a near-term resolution to the Middle East conflict. President Trump stated that US forces would end operations in Iran within two to three weeks, and Iranian President Masoud Pezeshkian signaled a readiness to halt hostilities provided adequate safeguards are put in place.

At the same time, 43 companies listed in Shanghai and Shenzhen announced share buyback plans totaling 25.6 billion yuan, the largest such commitment in nearly a year, as the ongoing conflict weighed on equity valuations.

On the macroeconomic front, a private survey showed that the manufacturing PMI eased to 50.8 in March from 52.1 in February, pointing to a moderation in factory activity while remaining in expansion territory.

Financial stocks led the advance, with Industrial and Commercial Bank of China, Agricultural Bank of China, China Merchants Bank, and Bank of China gaining between 0.5% and 1.6%. Technology shares also outperformed, as Zhongji Innolight, Eoptolink Technology, and Naura Technology climbed 2.6% to 3.5%.