China stocks rise 0.4% as agriculture and energy sectors gain amid Middle East tensions
The Shanghai Composite index climbed 0.4% while Hong Kong's Hang Seng Index fell 0.3%. Agricultural shares jumped roughly 4.6% due to government funding plans, offsetting pressure on technology stocks.
China stock markets edged higher on Tuesday. The blue-chip CSI 300 Index rose 0.1% by the lunch break, and the Shanghai Composite gained 0.4%. Both benchmarks had stabilised after a mid-year sell-off eroded their annual gains. In contrast, Hong Kong's Hang Seng Index fell 0.3%, influenced by escalating Middle East tensions affecting investor sentiment. Agriculture-related stocks in China jumped about 4.6% following the central government's announcement of a plan to strengthen funding for rural revitalisation. This policy support boosted expectations for greater aid to the agricultural sector. Energy stocks also advanced as oil prices climbed amid heightened regional tensions. Iran threatened the United States with economic retaliation and claimed to have fired an advanced missile at US targets, raising concerns about potential energy supply disruptions. Meanwhile, gold-related shares moved higher as bullion prices strengthened while the US dollar weakened.
