Chinese equities end mixed as gold stocks support market

Chinese equity markets ended on a mixed note on Thursday. The Shanghai Composite Index gained 0.57% to close at 3,900.4, supported by strong buying in gold mining stocks. In contrast, the Shenzhen Component Index declined 0.24% to 14,110.1, weighed down by weakness in technology shares.

Gold mining companies outperformed after gold prices moved higher. The rise in gold was driven by a weaker US dollar and lower US Treasury yields, along with easing geopolitical concerns following reports that Iran and Oman had reached an agreement on a proposed shipping route through the Strait of Hormuz. These developments improved sentiment towards safe-haven assets, benefiting gold-related stocks.

Technology stocks, particularly those in the artificial intelligence and semiconductor sectors, witnessed profit booking after recent gains. Investors also reassessed valuations in the sector, leading to a decline in several major chipmakers and technology companies.

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