The Shanghai Composite Index ended trading on Tuesday up 10 points, or 0.26 percent, at 3,890.
The Shenzhen Component Index ended up 47 points, or 0.36 percent, at 13,400 while the ChiNext Index, tracking China’s Nasdaq-style board of growth enterprises, was up 11 points, or 0.36 percent, at 3,160.
Investors coming back from the Qingming Festival holiday are closely monitoring developments in the Middle East as the UN Security Council is expected to vote on Tuesday on a resolution to protect commercial shipping in the Strait of Hormuz.
Meanwhile, the United States and Iran have been trading verbal barbs as US President Donald Trump reiterated threats to strike Iran unless Tehran makes a deal by Tuesday night.
“In the short term, the Iran war continues to dominate global assets pricing,” Ping An Securities said in a report. “In the mid- to long-term, the safe-haven nature of Chinese assets is expected to shine amid geopolitical upheavals.”
The war in the Middle East will lead to higher inflation and slower global growth, the head of the International Monetary Fund said on Monday.
Goldman Sachs said its most recent weekly tracking showed “limited impact from higher energy prices so far” on China’s economic activity.
Energy-related shares gained as President Xi Jinping called for accelerated planning and construction of a new system to safeguard the country’s energy security.
China’s chipmaking stocks jumped as investors bet on stronger policy support from Beijing after a cross-party group of US politicians proposed a law to impose further restrictions on exports of computer chipmaking equipment to China.
Shares of Chinese carmakers fell after three US Democratic senators on Friday urged Trump to bar them from building vehicles in the United States and to prevent Chinese cars assembled in Mexico or Canada from entering.
In Tokyo, the Nikkei swung between gains and losses before closing almost 16 points, or 0.03 percent, higher at 53,429. The broader Topix also struggled for direction, ending nine points, or 0.3 percent, higher at 3,654.
In Seoul, South Korean shares closed higher, led by Samsung Electronics after the world’s largest memory chipmaker flagged an eight-fold jump in quarterly profit.
The won strengthened, while the benchmark bond yield rose.
The benchmark Kospi rose 44 points, or 0.82 percent, to 5,494. (Reuters & Xinhua)
Edited by Edmond Fong
