The Shanghai Composite Index rose 1.6% on Tuesday, while the Shanghai Shenzhen CSI 300 Index jumped more than 2%.
This optimism extended to other Asian markets as well, where regional investors hoped that China’s measures to boost its sluggish economy would support global demand.
This comes at a time when fears of a possible trade war between the United States and China have created an atmosphere of uncertainty in the prospects for Asian economies, as incoming US President Donald Trump has pledged to impose additional tariffs on Chinese exports.
The Hang Seng Index rose 1.5% on gains in locally listed Chinese stocks.
In addition, markets such as Japan and South Korea also showed signs of positive movement, reflecting broader regional optimism. Japan’s Nikkei 225 rose 0.2%, while the Topix rose 0.3%.
South Korea’s Kospi rose 2.4% after sharp declines in the previous session. Investors shrugged off some concerns surrounding the country’s ongoing political crisis, after a turbulent week that saw a failed attempt by South Korean President Yoon Suk-yul to impose martial law in the country.
Singapore’s FTSE Straits Times Singapore rose 0.6%, the Philippines’ PSEi Composite rose 0.5%, while India’s Nifty 50 futures pointed slightly lower at the open.
