China markets rally on ceasefire optimism

China?s stock markets moved sharply higher on Wednesday, with the Shanghai Composite rising 2.69% and the Shenzhen Component gaining 4.79%, as both indices hit their highest levels in nearly three weeks. The rally was driven by improved global sentiment after a ceasefire agreement in the Middle East, which includes a temporary pause in US and Israeli strikes on Iran and the reopening of the Strait of Hormuz for oil shipments.

China also supported stability by keeping fuel prices unchanged and asking state oil companies to maintain steady production. Technology stocks led the gains, with companies like Zhongji Innolight, Eoptolink Technology, and NAURA Technology posting strong increases. However, energy stocks lagged the market, with names such as PetroChina, CNOOC, and China Shenhua Energy declining during the session.