FX.co ★ China Stocks Wobble on Mideast Worries

The Shanghai Composite was little changed on Wednesday, lacking clear direction as investors weighed ongoing developments in the Middle East. The US-Israeli campaign against Iran entered its 12th day with no resolution in sight, despite President Donald Trump’s suggestion that the conflict could end soon. Oil prices were contained after reports that the IEA had proposed the largest release of strategic oil reserves in its history to help stabilize markets. Even so, major Middle Eastern producers have sharply reduced output, with the Strait of Hormuz remaining effectively closed. While China is heavily dependent on Middle Eastern crude, its substantial strategic oil reserves leave it better positioned than many peers to absorb the supply shock. New energy stocks led the market higher, including Sungrow Power (9.9%), Contemporary Amperex (4.4%), and EVE Energy (9.6%). Technology shares also advanced, with Huagong Tech up 6.3%, Zhongji Innolight 2.3%, and Beijing Teamsun 7.4%.