Global Market: China stocks edge higher as agriculture, energy and gold shares offset tech weakness

China’s stock markets edged higher on Tuesday, supported by gains in agriculture, energy and gold-related shares, while technology stocks came under pressure. In Hong Kong, equities declined as escalating tensions in the Middle East weighed on investor sentiment, Reuters reported.

The blue-chip CSI 300 Index rose 0.1% by the lunch break, while the Shanghai Composite gained 0.4%. Both benchmarks have stabilised in recent sessions after a mid-year sell-off erased their gains for the year.

Hong Kong’s Hang Seng Index, which is generally more sensitive to global market sentiment, fell 0.3%.


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Agriculture Stocks Lead Gains
Agriculture-related stocks in China jumped about 4.6% after the central government announced a plan aimed at strengthening funding for rural revitalisation. The move boosted expectations of greater policy support for the agricultural sector.

Energy stocks also advanced as oil prices climbed amid heightened tensions in the Middle East. Reuters reported that Iran on Tuesday threatened the United States with economic retaliation and said it had fired an advanced missile at the US, adding to concerns over potential disruptions to energy supplies.

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Gold Stocks Gain as Dollar Slips
Gold-related shares also moved higher as bullion prices strengthened, while the US dollar weakened. Investors have continued to seek support from gold amid concerns surrounding fiscal conditions and geopolitical risks.

Reuters, citing Schroders portfolio manager James Luke, reported that the structural factors supporting gold prices remain strong, particularly against the backdrop of mounting US fiscal pressure.

Technology Shares Under Pressure
The gains in broader Chinese markets were limited by weakness in technology stocks, which reversed some of Monday’s rebound.

Computer, information-security, new-energy and chipmaking shares were among the biggest decliners in mainland China, with each sector falling by roughly 1%.

Hong Kong technology stocks also weakened, highlighting the cautious mood among investors as they assessed geopolitical risks and awaited key economic data.

US Inflation Data in Focus
Markets are also closely watching upcoming US inflation data, which could influence expectations for the Federal Reserve’s next policy decision. The figures are expected to provide fresh clues on the trajectory of US interest rates and could have implications for global equities, currencies and commodities.

For Chinese and Hong Kong markets, investors are balancing domestic policy support against external risks, particularly developments in the Middle East and the outlook for US monetary policy.